Unix. 

54 

333^ 


JapUeate  Collection 

f Ili.  Library 

Unit  5 C 

(Without  Business  Papers) 


American 
Bookkeeping  Series 


BY 


LLOYD  E.  GOODYEAR 


Copyright  1915  by 

Goodyear-Marshall  Publishing  Co. 
Cedar  Rapids,  Iowa 


The  following  work  is  planned  to  afford  extensive  insight  and 
drill  in  accounting  by  both  single  and  double  entry  for  the  average 
retail  business. 

Problem  20  A,  a short  memorandum  set  to  be  written  on  two 
column  day  book,  cash  book  and  ledger,  will  give  an  idea  of  the  scope 
of  single  entry  as  commonly  understood. 

The  Retail  Grocery  Set,  which  follows,  is  divided  into  three  parts. 

Part  One,  of  eighty  transactions,  presents  a modern  single  entry 
method,  making  use  of  cash  register  and  a practical  form  of  cash  and 
charge  sales  record. 

Part  Two,  of  one  hundred  transactions,  continues  the  same  work 
on  double  entry  books,  making  use  of  the  general  and  customers y 
balance  ledgers  and  the  cash  journal. 

Part  Three,  of  twenty  transactions,  affords  drill  in  making  un- 
usual entries  in  the  cash  journal  and  in  closing  partnership  accounts. 

The  practice  on  the  daily  balance  slip  in  Part  One,  and  on  the 
daily  audit  sheet  in  Part  Two,  should  be  of  interest  to  all  retailers. 


Unit  5 C 

PROBLEM  20  A— SINGLE  ENTRY. 


Iii  this  problem,  yon  are  directed  to  make  entries  in  day  book,  and 
cash  book  by  single  entry  method,  and  to  post  the  entries  pertaining 
to  personal  accounts.  At  the  close  of  the  problem,  a financial  state- 
ment is  required. 

The  Books.  The  day  book  (see  Form  17  A)  will  contain  a state- 
ment showing  the  resources  and  liabilities,  at  opening  or  when  pre- 
pared, and  all  entries  involving  a charge  or  credit  to  some  personal 
account,  when  such  entries  do  not  involve  receipt  or  payment  of  cash. 
A charge  is  indicated  by  “Dr”  after  the  name,  and  a credit  by  “Or.” 

The  cash  book  (see  Form  17  B)  will  contain  a record  of  all  re- 
ceipts and  payments  of  cash.  Only  those  receipts  from  persons  on 
book  account  (see  Form  17  B,  three  items  on  left  side),  and  only  the 
payments  to  persons  on  book  account  (see  Form  17  B,  two  items  on 
right  side)  are  to  be  posted  from  this  book. 

In  the  above  forms  the  post  mark,  or  “Folio,”  column  is  placed 
to  the  left  of  the  space  for  memoranda.  This  form  is  frequently  used 
in  both  single  and  double  entry  books. 

The  ledger  will  contain  (1)  accounts  to  be  collected  showing 
charges  for  merchandise  sold  or  other  items  posted  from  day  book, 
and  credits  for  cash  received  on  account  posted  from  cash  book ; 
(2)  accounts  to  be  paid  showing  credits  for  merchandise  bought 
posted  from  the  day  book,  and  charges  for  cash  paid  on  account, 
posted  from  the  cash  book;  (3)  accounts  may  contain  both  charges 
and  credits  from  the  day  book  or  cash  book,  as  when  the  same  person 
both  buys  from  and  sells  to  your  firm.  Such  accounts  may  result  in 
either  debit  or  credit  balances. 


v 

>- 


TRANSACTIONS. 

Use  one  folded  sheet  of  two-column  paper  for  day  book,  one  for 
cash  book,  also  one  folded  sheet  of  ledger  paper  to  record  the  follow- 
ing transactions.  Write  your  own  name  as  proprietor. 

Feb.  1,  191—. 

Commenced  business  with  the  following : 

Resources — Cash,  $556.02;  a stock  of  groceries  inventoried  at  $300, 
and  a balance  of  account  of  $200,  due  from  R.  E.  Lee.  (Day  Book. 
Form  17  A,  and  Cash  Book,  Form  17  B.) 

Liabilities — Balance  of  account  favor  James  Dawes,  $75;  and 
balance  of  account  favor  M.  E.  King,  $150.  (Day  Book.) 

Paid  cash  for  rent  of  store  room  one  month,  $25.  (Cash  Book.) 

Received  invoice  from  Hart  & Co.,  Boston,  of  merchandise  bought 
of  them  on  account,  amounting  to  $236.95.  (Day  Book.) 

Paid  cash  for  freight  on  above  invoice,  $3.  (Cash  Book.) 

The  above  transactions  comprise  the  work  of  the  first  day.  You 
may  now  post,  opening  accounts  on  ordinary  ledger  paper,  eight  lines 


to  the  account.  Number  the  accounts  as  opened,  and  consider  the 
numbers  pages  for  posting  purposes.  Post  R.  E.  Lee’s  debit  balance, 
M.  E.  King’s  and  James  Dawes’  credit  balances;  also  Hart  & Co.’s 
credit.  Hereafter,  post  at  the  close  of  each  day’s  entries. 

2 

Sent  cash  per  bank  draft  to  the  Union  Woolen  Mills,  to  pay  for  an 
invoice  of  cassimere  and  flannel  amounting  to  $201.50,  on  which  they 
have  offered  a cash  discount  of  5 per  cent  if  the  invoice  is  paid  at  once 
Amount  sent,  $191.42.  (Cash  Book.) 

Paid  cash  for  exchange  on  above  draft,  25  cents.  (Cash  Book.) 

Paid  cash  for  freight  on  above  invoice,  $1.75.  (Cash  Book.) 

The  sale  tickets  for  the  day  show  cash  sales  amounting  to  $33.29. 
(Cash  Book.) 

Paid  cash  for  cleaning  store  room,  $2.50.  (Cash  Book.) 

3 

Sold  my  stock  of  groceries  to  M.  E.  King  for  $325,  receiving  cash 
to  apply  on  same,  $175 ; balance  on  account.  (Day  Book  and  Cash 
Book.) 

Received  from  Hart  & Co.,  a second  invoice  of  merchandise 
bought  of  them  on  account,  amounting  to  $49.49.  (Day  Book.) 

Paid  cash  for  freight  on  last  invoice,  $1.50.  (Cash  Book.) 

Sent  Hart  & Co.  cash  per  draft  to  apply  on  account,  $25 ; also  pay- 
ing cash  for  exchange  on  the  draft,  10  cents.  (Cash  Book.) 

Sold  A.  E.  Blair  on  account  6 yds.  Cassimere  @ 95c,  10  yds. 
Bleached  Sheeting  @ 10c,  4 yds.  Cotton  Flannel  @ 20c.  (Day  Book.) 

Bought  of  L.  A.  Kemp  on  account  200  lbs.  of  Wool  @ 27c.  Sold 
him  on  account  10  yds.  Cashmere  @ $1,  25  yds.  Cotton  Flannel  @ 20c, 
43  yds.  Print  @ 6c.  (Day  Book.) 

Cash  sales  today  per  tickets  amount  to  $54.01.  (Cash  Book.) 

Paid  T.  Jenks  cash  for  100  lbs.  Wool  @ 27c.  (Cash  Book.) 

4 

Sold  to  J.  Q.  Adams  10  yds.  Cassimere  @ 95c,  20  yds.  Brown 
Sheeting  @ 8c,  16  yds.  Denim  @ 18c,  24  yds.  Gingham  @ 12%c. 
Received  of  him  cash  to  apply  on  the  purchase  $10,  balance  on  account. 
(Day  Book  and  Cash  Book.) 

Bought  of  M.  E.  King  on  account  200  lbs.  Wool  @ 27c.  (Day 
Book.) 

Paid  cash  to  sundry  persons  for  1,200  lbs.  Wool  @ 27c.  (Cash 
Book.) 

Bought  300  lbs.  Wool  of  G.  A.  Hunter,  selling  him  sundry  mer- 
chandise in  part  payment,  and  giving  him  cash,  $55.86  to  pay  the 
balance.  (Cash  Book.) 

Shipped  to  the  Union  Woolen  Mills,  Clinton,  on  account,  2,000  lbs. 
Wool  @ 30c.  (Day  Book.) 

Paid  cash  for  freight  on  the  wool,  $10.  (Cash  Book.) 

Cash  sales  today  per  tickets  amount  to  $38.22.  (Cash  Book.) 

Paid  Hart  & Co.  cash  to  apply  on  account,  $100.  (Cash  Book.) 


4 


Received  cash  of  R.  E.  Lee  to  apply  on  account,  $25.  (Cash  Book.) 

The  cash  in  drawer  and  safe  this  evening  amounts  to  $124.16. 
(The  Cash  Book  should  show  the  same  balance.) 

Rule  the  Cash  Book  and  carry  balance  down. 

5 

Received  cash  of  the  Union  Wool  Mills  to  apply  on  account,  $100. 

Sold  R.  E.  Lee  on  account  20  yds.  Cashmere  @ $1,  24  yds.  Ging- 
ham @ 12y2c,  15  yds.  Flannel  @ 50c. 

Received  invoice  from  Hart  & Co.  of  merchandise  bought  of  them 
on  account,  amounting  to  $388. 

Paid  cash  for  freight  on  last  invoice,  $1.75. 

Paid  cash  for  drayage  to  date,  $2.25. 

Paid  cash  for  premium  on  insurance  of  merchandise,  $5. 

Paid  James  Dawes  cash  on  account,  $25. 

Bought  of  H.  S.  Lowry,  350  lbs.  Wool  @ 27c.  Paid  him  cash  to 
apply  on  the  purchase,  $47.25 ; balance  on  account. 

Bought  300  lbs.  Butter  of  G.  W.  Simmons,  selling  him  sundry 
merchandise  in  part  payment  and  giving  him  cash,  $39.52,  to  pay  the 
balance. 

Cash  sales  today  per  tickets  amount  to  $87.10. 

Received  cash  from  R.  E.  Lee  to  apply  on  account,  $25. 


Sent  Hart  & Co.  cash  per  draft  to  apply  on  . account,  $50.  Also 
paid  cash  for  exchange  on  the  draft,  10  cents. 

Received  cash  of  J.  Q.  Adams  to  apply  on  account,  $5. 

Paid  M.  E.  King  cash  to  apply  on  account,  $20. 

Paid  cash  for  suit  of  clothes  for  self,  $18.75. 

Received  cash  of  A.  E.  Blair  to  apply  on  account,  $6. 

Sold  H.  S.  Lowry  on  account  10  yds.  Cashmere  @ $1,  6 spools 
Thread  @ 5c,  4iy2  yds.  Bleached  Sheeting  @ 10c,  43  yds.  Print  @ 6c. 
Received  cash  of  R.  E.  Lee  to  apply  on  account,  $40. 

Cash  sales  today  per  tickets  amount  to  $80.52. 

Paid  James  Dawes  cash  on  account,  $20. 

Received  cash  of  the  Union  Woolen  Mills  to  apply  on  account, 
$150. 

Paid  L.  A.  Kemp  cash  on  account,  $25. 

Paid  cash  to  sundry  persons  for  400  lbs.  Butter  @ 20c. 

Shipped  to  Lee  & Shepard,  New  York,  700  lbs.  Butter,  on  account, 
@ 22%c. 

Paid  cash  for  freight  on  the  butter,  $3.50. 

The  cash  in  safe  and  drawer  this  evening  amounts  to  $279.66. 
Balance  cash  book  and  carry  balance  down. 


Personal  accounts  are  supposed  to  be  settled  at  the  end  of  the 
month  in  ordinary  business  where  cash  discounts  are  not  considered, 
although  it  is  rarely  that  all  accounts  can  be  collected  at  any  one  time. 
However,  statements  to  customers  should  be  made  out  on  the  last  day 
of  the  month,  the  statements  covering  the  account  of  a month’s  trans- 
actions. When  statements  are  made,  the  accounts  are  balanced. 

In  this  exercise,  the  student  may  balance  the  accounts  as  would 
be  done  at  the  end  of  the  month.  Enter  the  balances  in  red  ink,  rule, 
and  carrying  the  balances  below  in  black  ink. 

Financial  Statement.  With  Form  2 as  a general  model,  prepare 
a financial  statement. 

1.  Enter  cash  balance  from  cash  book. 

2.  Enter  debit  balances  from  ledger  accounts. 

3.  Enter  total  of  inventory  consisting  of  the  following  items: 

Merchandise  unsold  at  cost $546.95 

350  lbs.  Wool  at  27c _ 1 

% Rent  payment  on  Feb.  2 ? 

3/2  Insurance  payment  on  Feb.  5 ? 

4.  Enter  credit  balances  from  ledger  accounts. 

5.  Enter  net  wTorth  in  red  ink. 

Rule  and  total  asset  and  liability  columns. 

6.  Carry  net  worth  below  ruling  into  left  column. 

7.  Carry  net  worth  of  Feb.  1,  from  day  book  below  into  right 
column. 

8.  Place  difference  below  in  lesser  column,  red  ink.  If  a gain 
write  “Gain  to  date,”  if  a loss  write  “Loss  to  date.” 

Rule  and  total  the  last  named  columns. 

Copy  this  statement  in  your  day  book. 

Fill  out  review  sheet  for  Problem  20  A and  submit  work  for 
inspection. 


6 


Retail  Grocery  Set 

In  this  set  the  student  will  assume  proprietorship  of  a retail 
grocery  business.  The  accounting  plans  will  be  such  as  are  adapted 
to  the  ordinary  grocery,  meat  market,  feed  store,  hardware  store,  drug 
store,  etc.,  where  the  proprietor  usually  makes  numerous  small  sales 
for  cash  or  on  monthly  settlements.  Five  days’  work  are  recorded  by 
single  qptry,  followed  by  double  entry  records  to  the  completion  of  a 
month’s  transactions. 

PART  ONE— SINGLE  ENTRY. 

Many,  perhaps  the  majority  of  shopkeepers,  consider  their  busi- 
ness affairs  of  so  simple  a character  that  they  feel  competent  to 
remember  the  general  facts  about  their  business  without  the  aid  of 
permanent  accounts  of  capital,  property,  expenses,  etc.  Such  business 
men  are  satisfied  with  a scheme  of  record  that  will  enable  them  to  keep 
accurate  accounts  of  cash,  collections  and  payments  to  be  made.  In 
addition  to  this,  the  amount  of  sales  made  from  period  to  period 
affords  an  indication  of  the  progress  of  their  business.  In  Part  One 
of  the  present  set,  a single  entry  system,  exhibiting  the  facts  mentioned 
above,  will  be  used. 

It  is  important  in  a small  retail  business  to  have  a system  of 
accounting  that  affords  a practical  certainty  that  all  transactions  are 
actually  recorded.  This  will  appear  more  important  when  you  con- 
sider that  the  shopkeeper  is  frequently  very  busy  weighing,  measuring, 
selling,  making  note  of  goods  to  be  ordered,  making  change,  and  taking 
orders  by  telephone  and  at  the  counter.  His  bookkeeping  system  must 
adapt  itself  to  his  other  work,  with  the  least  possible  inconvenience. 

Plan  of  Record.  In  Part  One,  of  this  set,  use  will  be  made  of  the 
cash  register,  with  daily  statement  slip ;,  sales  books  and  daily  cash 
and  charge  sale  records.  A bank  checking  account  will  require  entries 
in  the  check  book. 

NOTE. — The  author  would  recommend  the  system  used  in  Part  One  of  this 
set  only  to  persons  who  are  unfamiliar  with  a complete  accounting  system.  The 
fact  that  such  systems  as  this  are  in  general  use  in  small  stores  is  considered 
sufficient  reason  for  giving  it  attention. 

The  Cash  Register.  This  machine  was  primarily  intended  to 
make  an  automatic  concealed  record  of  cash  receipts,  and  to  provide 
a locked  drawer  for  the  protection  of  cash.  In  order  to  open  the 
drawer,  the  salesman  must  necessarily  make  a record — a provision 
against  forgetfulness.  The  amount  of  a given  record  is  visible  to 
both  customer  and  salesman  concerned  in  a given  transaction.  This 
provision  tends  to  prevent  clerks  from  making  false  records. 

The  convenience  of  this  machine,  and  its  wide  use  have  caused 
manufacturers  to  add  many  practical  devices  to  the  original  plan, 
resulting  in  various  types  of  cash  registers,  more  or  less  complicated. 
In  this  illustrative  set  we  follow  the  accounting  plan  used  in  numer- 
ous small  stores  with  good  results,  in  connection  with  a recent  type- 
of  cash  register. 


7 


What  the  Cash  Register  Shows.  The  cash  register  here  described 
— a machine  costing  about  $150 — is  constructed  to  record  and  add 
automatically  all  cash  receipts  as  taken  in.  Beginning  with  the 
machine  clear  in  the  morning,  the  amount  collected  at  any  given  time 
is  visible  on  the  “Cash  Received”  adding  counter.  (See  Form  171.) 
By  the  same  action,  the  numbering  counters  show  how  many  times  the 
cash  drawer  has  been  open  under  “Customers”;  how  many  collections 
were  made  to  apply  on  account  under  “Rec’d  on  Acc’t”;  how  many 
charge  sales  were  made  under  ‘ ‘ Charge  ’ ’ ; how  many  disbursements 
were  made  out  of  the  cash  drawer  under  “Paid  Out”;  how  many  times 
the  drawer  was  opened  without  a transaction,  as  in  making  change  for 
a bill  under  “No  Sale.” 

The  sum  of  the  four  last  mentioned  numbering  counters  taken  from 
the  sum  in  the  customer’s  counter,  shows  the  number  of  cash  sales. 

The  record  is  made  by  the  operator  pressing  the  keys  (see  key 
arrangement,  Form  17  I)  so  as  to  show  the  kind  and  amount  of  each 
transaction  as  it  occurs.  This  action  causes  a record  to  be  printed  on 
a Detail  Strip  (see  Form  17  J)  showing,  if  a cash  sale,  simply  the 
amount;  if  a charge  sale,  the  amount  preceded  by  “Ch;”  if  a receipt 
of  cash  on  account,  the  amount  preceded  by  “Rc”;  if  a payment  of 
cash,  the  amount  preceded  by  “Pd.”  Thus  in  the  model  detail  strip, 
the  amounts,  $2.41,  $4.78  are  records  of  cash  sales;  the  following  item 
“Ch.  $25.60”  is  record  of  a charge  sale,  the  record  “00”  is  a record 
of  no  sale,  etc.  The  detail  strip  prints  the  amounts  in  sight  of  the 
operator,  and  permits  additional  pencil  memoranda  where  explanation 
is  desirable. 

Daily  Balance  Slip.  At  the  close  of  the  day,  the  daily  balance 
slip  is  made  up  from  the  cash  on  hand,  machine  records,  and  reference 
to  the  memoranda.  After  taking  out  the  fund  placed  in  the  cash 
register  at  starting  for  making  change,  the  cash  is  counted  and  placed 
on  daily  balance  slip,  opposite  “cash  in  drawer”  (see  Form  17  K.) 

On  the  reverse  side  of  daily  balance  slip  (see  form)  are  entered 
the  amounts  of  the  items  (1)  paid  out,  (2)  received  on  account,  (3) 
charge  sales.  Compare  the  amounts  in  the  form  with  the  detail  strip. 
By  using  these  amounts  you  will  readily  see  how  the  remainder  of 
the  proofs  are  completed  in  the  cash  and  charge  records  of  the  daily 
balance  slip  which  the  student  will  be  instucted  to  follow  out  under 
more  specific  directions  at  the  close  of  the  first  day’s  transactions 
following. 

Cash  and  Charge  Record.  The  totals  of  the  daily  balance  slip 
are  written  in  the  daily  cash  and  charge  record  book.  This  book  con- 
tains the  records  of  one  month,  allowing  one  line  for  each  day,  together 
with  a line  between  the  daily  records  for  adding  totals  to  date,  thus 
providing  dedails  of  each  day’s  business,  together  with  accumulating 
totals  day  by  day.  The  details  of  handling  this  book  will  also  be 
explained  as  you  proceed.  The  totals  of  the  month  are  transferred 
from  the  daily  cash  and  charge  record  to  a similar  monthly  cash  and 
charge  record  (see  Form  17  L.) 

Sales  Book.  The  proprietor  of  the  store  carries  a sales  book,  or 
if  there  are  several  salesmen  each  carries  his  individual  book.  This 


8 


sales  book  ordinarily  contains  fifty  sales  slips — originals  and  dupli- 
cates. On  making  a sale  to  a customer,  the  items  are  entered  in  dupli- 
cate, extended,  and  the  slips  are  detached  from  the  book,  when  one 
slip  is  handed  to  the  customer,  and  the  other  is  placed  in  the  drawer 
for  entry  in  the  books.  It  is  customary  to  deliver  the  original  copy  to 
the  customer  and  keep  the  duplicate  when  making  a cash  sale.  When 
making  a charge  sale,  the  duplicate  is  delivered  and  the  original  kept. 
The  slips  are  assorted  at  the  close  of  the  day  and  the  charge  sales  are 
posted  from  the  slips  to  the  ledger  accounts. 

A collection  of  cash  on  accounts  from  a customer  is  receipted  for 
by  entry  on  a sale  slip  (see  Form  17  G),  the  original  kept  for  posting 
and  the  duplicate  handed  to  the  customer. 

In  the  present  set  the  student  will  use  debit  and  credit  tickets  to 
represent  sales  slips  for  posting  purposes.  In  cash  sales  no  tickets 
will  be  required. 

Invoices  and  Bills  Payable  (See  Form  17  H.)  Purchase  invoices 
are  entered  in  this  book  and  numbered  to  agree  with  the  record 
number.  When  paid,  the  date  of  payment  and  the  check  number  are 
written  to  the  right.  The  date  of  payment  is  entered  as  a convenient 
reminder  when  to  pay  invoices  that  are  not  settled  at  time  of  purchase. 

Notes  are  sometimes  given  to  the  bank  for  borrowed  money.  In 
order  to  have  a record  of  all  maturities  payable  in  one  place,  future 
due  notes  are  recorded  in  this  book  with  the  invoices  payable  but  dis- 
tinguished from  the  latter  by  red  ink  entry. 

Check  Book.  A number  of  important  cash  payments  will  be 
made  by  check.  The  student  will  keep  a record  of  the  bank  account 
on  stubs  of  check  book. 


TRANSACTIONS. 

Sept.  1,  19 — 

1.  Begin  business  with  cash  $1,000,  which  deposit  in  bank  check- 
ing account.  (Your  cash  investment  has  been  placed  in  cash  register 
envelopes.) 

In  the  present  theory  set,  you  are  required  to  keep  record  of  the 
bank  account  only  on  the  stub  of  the  check  book.  Consider  the  deposit 
properly  made  by  placing  the  cash  in  the  “community  cash”  envelope, 
and  making  the  record  on  the  check  book  stub. 

2.  Pay  J.  H.  Harper  by  check  for  rent  of  store  room  one  month 
$30.  Enter  in  stub  of  check  book  and  carry  balance  forward. 

3.  Buy  of  Daniel  Bennett  goods  invoiced  this  date  amounting  to 
$600  paying  by  check  No.  2. 

Enter  in  invoices  payable  book  (see  Form  17  H),  record  check 
for  the  amount,  and  mark  the  invoice  paid  on  margin  of  invoices  pay- 
able book. 

4.  Buy  of  Fenton  Produce  Co.  invoice  of  merchandise  dated 
Sept.  1,  terms  2/10,  for  $33.60. 

Enter  in  invoices  payable  book.  Pay  by  check  the  amount  after 
discount.  Mark  date  of  payment  and  check  number  in  invoices  pay- 
able book. 


9 


5.  Sell  to  James  Armstrong,  127  Third  St.,  to  be  delivered  by  9 
a.  m.,  collecting  cash  for  the  bill,  5 lbs.  A Sugar  @ 6c,  1 lb.  Mocha 
Coffee  @ 40c,  2 doz.  Eggs  @ 18c,  4^4  lbs.  Ham  @ 14c,  y2  bu.  Apples 
@ $1.50. 

Compute  the  amount,  count  cash  from  the  “Community  Cash” 
envelope  and  place  it  in  the  cash  register,  making  a record  on  the 
detail  strip  (see  Form  17  J.)  In  this  set  the  student  is  not  required 
to  write  sales  slips  for  cash  sales. 

Explanatory.  In  the  contrivance  here  used  to  represent  a cash 
register  the  student  is  expected  to  make  in  pencil  or  ink  the  record 
that  would  ordinarily  appear  in  the  detail  strip.  These  records  must 
be  made  with  the  utmost  care.  At  the  close  of  each  day,  the  records 
that  should  appear  in  the  adding  counters  may  be  found  printed  on 
the  back  of  the  cash  register  envelope.  The  student  is  cautioned  to 
make  an  accurate  detail  strip,  for  the  detail  strip  must  prove  with  the 
adding  counters. 

6.  Sell  C.  E.  Bonner,  229  Fourth  Avenue,  to  be  delivered  by  10 
a.  m.,  6 lbs.  G Sugar  @ 6y2c,  2 cans  Peaches  @ 25c,  6 cakes  Ivory 
Soap  @ 5c,  5 y2  lbs.  Butter  @ 22c,  1 pk.  Turnips  @ 18c,  2 gals.  Maple 
Syrup  @ 75c,  2 lbs.  Coffee  @ 35c,  collecting  cash  for  the  bill. 

Follow  the  routine  given  for  transaction  5. 

Caution.  It  is  very  important  that  cash  be  carefully  counted. 
An  error  will  cause  a great  deal  of  trouble  when  cash  proof  is  to  be 
taken.  You  will  have  a great  deal  of  practice  in  counting  cash  as  you 
proceed.  Be  accurate. 

7.  The  Union  Hotel  Co.,  316  Park  Avenue,  order  on  account  for 
delivery  at  10  a.  m.,  100  lbs.  G Sugar  @ 6% c,  20  lbs.  Mocha  Coffee  @ 
40c,  10  doz.  Eggs  @ 18c,  1 doz.  Canned  Peaches  @ 25c  per  can,  5 lbs. 
Japan  Tea  @ 45c,  15  lbs.  Ham  @ 11c,  1 box  Grapes,  20  lbs.  @ 12c. 

In  actual  business  duplicate  sales  slips  would  be  made  out,  the 
copy  handed  to  the  customer  and  the  original  placed  in  the  drawer  for 
entry  later.  In  this  set  use  a debit  slip  only,  which  record  on  detail 
strip  (see  Form  17  J),  and  place  the  slip  in  the  cash  register  drawer. 

A person  asks  you  to  change  a one  dollar  bill.  Take  the  incoming 
bill  from  community  cash  and  deliver  to  community  small  change  from 
the  drawer. 

Make  no  sale  record  “00”  on  detail  strip.  (See  Model.) 

This  shows  that  the  cash  drawer  has  been  opened  without  a busi- 
ness transaction  having  taken  place. 

8.  Sell  John  Emery,  492  Third  Avenue,  2 pa.  Rolled  Oats  @ 10c, 

2 y2  lbs.  Cheese  @ 15c,  4 lbs.  Prunes  @ 3 lbs.  Java  Coffee  @ 35c, 

collecting  cash  for  the  bill. 

9.  Pay  John  Turner  cash  for  cleaning  store  room  $2,  taking  no 
receipt. 

The  cash  should  be  taken  from  cash  drawer  and  placed  in  com- 
munity cash.  In  addition  to  the  record  “Pd.  2.00,”  which  is  to  be 
recorded  on  detail  strip,  write  explanatory  pencil  memoranda  (see 
detail  strip,  Form  17  J.) 

10.  Sell  to  City  Restaurant,  169  Second  Street,  for  delivery  at 
11  a.  m.,  1 brl.  Apples  @ $3.75,  75  lbs.  A Sugar  @ 6c,  10  bu.  Potatoes 
@ 50c,  5 lbs.  Rice  @ 9% c,  collecting  cash. 


10 


Hereafter  enter  cash  sales  on  detail  strip  only,  and  place  the  cur- 
rency in  the  drawer. 

11.  Sell  A.  R.  Baker,  212  Second  Street,  on  account,  4 lbs. 
Apricots  @ 15c,  6 cakes  Ivory  Soap  @ 5c,  5 lbs.  Butter  @ 20c,  50  lbs. 
C Sugar  @ 5%c,  3 lbs.  Java  Coffee  @ 35c,  2 gals.  N.  0.  Molasses  @ 40c, 
10  lbs.  Beans  @ 5c. 

Enter  on  detail  strip  and  place  debit  slip  in  drawer. 

12.  Sell  Mrs.  N.  Hammond,  217  Sixth  Street,  % lb.  Japan  Tea  @ 
45c,  1 y2  bu.  Potatoes  @ 50c,  4 lbs.  Rice  @ 10c,  10  lbs.  C Sugar  @ 5 y2e, 
4 lbs.  Rio  Coffee  @ 25c,  1 sk.  Flour  @ 75c,  12  lbs.  Mess  Pork  @ 9c, 
collecting  cash. 

13.  Sell  Henry  Keister,  459  Sixth  Street,  1 bu.  Onions  @ 95c,  6 
cans  Corn  @ 16  2/3c,  4 heads  Cabbage  @ 10c,  1%  doz.  Oranges  @ 25c, 
10  lbs.  Beans  @ 5c,  12  lbs.  G Sugar  @ G^c,  collecting  cash. 

14.  Sell  Union  Hotel  Co.,.  316  Park  Avenue,  on  account,  to  be 
delivered  at  once,  10  lbs.  Cheese  @ 14^0,  50  lbs.  Butter  @ 18‘%c,  25 
lbs.  Bacon  @ 12c,  1 brl.  Flour  @ $5.50,  6 gal.  Maple  Syrup  @ 70c,  120 
lbsi  C Sugar  @ 

15.  Sell  Mrs.  M.  J.  Fletcher,  326  Archer  Avenue,  on  account,  to 
be  delivered  by  3 p.  m.,  5 lbs.  Butter  @ 20c,  2 gals.  Maple  Syrup  @ 
75c,  5 lbs.  Laundry  Starch  @ 10c,  10  lbs.  Rio  Coffee  @ 25c,  2 doz. 
Lemons  @ 25c,  2 sks.  Flour  @ 75c,  1 lb.  Eng.  Breakfast  Tea  @ 50c. 

16.  Sell  N.  M.  Martin,  424  Third  Street,  6 lbs.  Grapes  @ 12c,  3 
lbs.  Java  Coffee  @ 35c,  8 lbs.  G Sugar  @ 6V2C,  6 lbs.  L Starch  @ 10c, 
4 doz.  Lemons  @ 25c,  1 lb.  Eng.  Breakfast  Tea  @ 55c,  collecting  cash. 

NOTE. — When  you  cannot  find  the  exact  change  desired  in  community 
cash,  make  change  from  cash  register. 

17.  Collect  from  Union  Hotel  Co.  $25  currency  on  account. 
Enter  the  amount  on  a credit  slip,  record  on  detail  strip  and  place 
credit  slip  in  drawer. 

18.  Paid  cash  from  drawer  for  sundry  garden  produce,  $15.20. 

Pass  the  currency  from  the  register  to  the  community  cash.  Make 

pencil  memoranda  on  detail  strip  for  all  payments.  No  other  record 
is  required. 

19.  In  your  sale  to  City  Restaurant,  transaction  ten,  you  charged 
$3.75  for  a barrel  of  apples  when  the  price  should  have  been  $3.25. 
This  being  reported  to  you,  hand  the  proprietor  fifty  cents,  the  amount 
of  the  overcharge.  Record  on  detail  strip  with  the  annotation, 
“ Refund  City  Restaurant.” 

20.  You  may  consider  this  the  close  of  a day’s  records. 

Prove  Cash.  Count  the  cash  in  the  drawer  and  place  amount  in 
“Cash  in  Drawer”  line  of  the  daily  balance  slip.  (See  form.)  On 
reverse  side  of  the  daily  balance  slip,  transfer  from  the  adding  counters 
the  number  of  transactions  of  each  kind,  and  in  the  columns  beneath, 
copy  the  amounts  of  the  tansactions  from  the  detail  strip,  and  find 
totals.  After  copying,  see  that  the  number  of  items  in  each  column 
agrees  with  numbers  you  should  have  taken,  comparing  with  the  slip 
numbers  at  head  of  column. 

Transfer  total  of  “Paid  Out”  to  the  next  line  of  the  front  side  of 
slip,  and  add,  placing  total  in  the  next  line.  Compare  total  thus  found 
with  total  cash  received  shown  on  adding  counter  of  your  cash  register. 

11 

LIBRARY 

N v^sity  of  wmm 


Likewise,  transfer  total  “Rec’d  on  Acc’t”  and  substract,  showing 
“ Gross  Cash  Sales.”  Deduct  from  this  any  refunds  if  any  are  shown 
on  detail  slip,  leaving  “Net  Cash  Sales.” 

Transfer  Charge  Sales  to  front  side  of  daily  balance  slip,  deduct 
for  sold  goods  returned  for  credit,  if  any,  and  complete  the  record  by 
showing  total  sales  for  the  day. 

Cash  and  Charge  Record.  Transfer  the  amounts  shown  on  daily 
balance' book  to  the  columns  of  the  cash  and  charge  record  book,  Form 
17  L,  having  headings  to  agree  with  the  explanations  on  the  slip. 

Cashier’s  Fund.  Place  $5  in  the  cash  register  for  making  change 
tomorrow,  and  enter  the  amount  at  top  of  the  next  following  daily 
balance  slip,  placing  the  balance  slip  in  the  drawer.  Register  “no 
sale”  on  detail  strip. 

Deposit.  The  remaining  cash  you  will  consider  deposited.  Place 
it  in  the  “Communnity  Cash”  envelope  and  enter  on  check  stub. 

Posting.  With  the  four  customers’  debit  slips  and  one'  credit  slip 
before  you,  open  accounts  in  the  customers’  ledger,  beginning  with 
page  15,  comparing  with  Form  17  D,  where  the  balance  entry  on  the 
first  line  will  be  disregarded  when  opening  new  accounts.  Post  in  the 
order  of  the  transaction  numbers  and  carry  balance  to  the  third 
column  when  you  post. 

September  2. 

21.  Buy  of  Dalton  & White  per  invoice  dated  Sept.  1,  terms  2/10, 
amount  $66.39.  Enter  in  invoices  payable  book;  pay  by  check  after 
deducting  the  cash  discount  together  with  $1  estimated  damage  to 
goods  on  account  of  defective  packing. 

22.  Sell  Mrs.  E.  M.  Sawyer,  419  Third  Street,  3 doz.  Eggs  @ 18c, 
% bu.  Apples  @ $1.50,  % bu.  Turnips  @ 75c,  2 bunches  Radishes  @ 
10c,  2 lbs.  Cheese  @ 15c,  collecting  cash. 

23.  Sell  W.  C.  Norton,  213  Third  Avenue,  25  lbs.  A Sugar  @ 6c, 
4 lbs.  Apricots  @ 15c,  2 sks.  Flour  @ 75c,  1 sk.  Corn  Meal  @ 45c,  5 
lbs.  Mocha  Coffee  @ 40c,  6 doz.  Eggs  @ 18c,  collecting  cash. 

24.  Pay  cash  for  sundry  garden  produce  $5.10. 

25.  Sell  to  A.  R.  Baker,  on  account,  to  be  delivered  before  1 
p m.,  2 doz.  Bananas  @ 15c,  4 lbs.  Prunes  @ I2V2C,  2 gals.  Crystal 
Syrup  @ 35c,  3 lbs.  Java  Coffee  @ 35c.  2 doz.  Oranges  @ 25c,  y2  lb. 
Cheese  @ 15c,  2 lbs.  Japan  Tea  @ 35c,  50  lbs.  G Sugar  @ 6V2c. 

26.  Sell  E.  H.  Preston,  195  Second  Avenue,  1 lb.  Y.  H.  Tea  @ 45c, 
2 doz.  Bananas  @ 15c,  2 gals.  Cystal  Syrup  @ 45c,  4 lbs.  Java  Coffee 
@ 35c,  7 lbs.  Bacon  @ 12y2c,  12  lbs.  G.  Sugar  @ 614c,  collecting  cash. 

27.  Sell  Mrs.  M.  J.  Fletcher,  on  account,  to  be  delivered  at  once, 
50  lbs.  Mess  Pork  @ 9c,  4 sks.  Flour  @ 75c,  10  lbs.  Butter  @ 20c,  5 
bu.  Potatoes  @ 50c,  1 bu.  Onions  @ 95c,  5 hds.  Cabbage  @ 10c,  2 
bunches  Radishes  @ 10c. 

28.  Sell  the  City  Restaurant,  168  Second  Street,  for  cash,  to  be 
delivered  at  once,  10  pkgs.  Rolled  Oats  @ 10c,  10  lbs.  Y.  H.  Tea  @ 40c, 
10  gals.  Crystal  Syrup  @ 35c,  10  lbs.  Cheese  @ 15c,  1 br).  Apples  @ 
$2.75,  1 brl.  Flour  @ $5.50,  5 cans  Peaches  @ 25c,  collecting  cash. 

29.  Collect  from  A.  R.  Baker,  cash  $10,  on  account. 


12 


30.  Sell  A.  R.  Cushman,  116  Ninth  Street,  5 lbs.  Java  Coffee  @ 35c, 
y2  hu.  Onions  @ 95c,  3 gals.  Maple  Syrup  @ 75c,  3 hds.  Cabbage  @ 10c, 
collecting  cash. 

31.  Sell  A.  R.  Baker,  212  Second  Street,  on  account,  to  be  deliv- 
ered by  1 p.  m.,  16  cans  Corn  @ 16  2/3c,  10  cakes  Ivory  Soap  @ 5c, 
4 doz.  Eggs  @ 15c,  25  lbs.  A Sugar  @ 6c,  2 sks.  Corn  Meal  @ 45c,  50 
lbs.  Bacon  @ 12%c. 

32.  Sell  the  Union  Hotel  Co.,  on  account,  6 cans  Peaches  @ 25c, 
121/2  lbs.  Ham  @ 14c,  7 lbs.  Apricots  @ 15c,  20  cakes  Ivory  Soap  @ 5c, 
15  lbs.  Beans  @ 5c. 

33.  Sell  E.  M.  Webster,  212  Fourth  Street,  2 y2  bu.  Potatoes  @ 
50c,  10  lbs.  Rice  @ 10c,  12  lbs.  C Sugar  @ 5y2c,  11  lbs.  Bacon  @ 12y2c, 
4 hds.  Lettuce  @ 5c,  2 sks.  Table  Salt  @ 10c,  collecting  cash. 

34.  Sell  A.  R.  Baker,  on  account,  to  be  delivered  before  4 p.  m., 
25  lbs.  C Sugar  @ 5y2c,  2 doz.  Bananas  @ 15c,  4 lbs.  Cheese  @ 15c,  1 
bu.  Potatoes  @ 50c,  5 lbs.  Butter  @ 20c,  4 lbs.  Java  Coffee  @ 35c,  8% 
lbs.  Ham  @ 14c. 

35.  Considering  this  the  close  of  the  day,  prove  cash  and  complete 
the  day’s  records  as  directed  in  Transaction  20. 

Before  counting  cash,  however,  take  $5  from  the  drawer.  This 
amount  is  kept  as  a cashier’s  fund  for  change,  and  will  not  be  counted. 

After  entry  in  cash  and  charge  record,  add  yesterday’s  and  today’s 
columns  in  the  third,  or  “To  Date”  line,  in  red  ink.  (See  Form  17  L.) 

NOTE. — After  the  entries  for  the  first  day  in  the  daily  cash  and  charge 
record  book,  the  amounts  are  not  intended  to  agree  with  the  results  secured  by 
the  student.  They  are  given  as  form  illustrations  only. 

Deposit  today’s  cash  in  drawer,  excluding  the  $5  cashier’s  fund, 
which  you  will  return  to  the  cash  drawer  with  balance  slip  for  to- 
morrow, as  before  instructed. 

September  3. 

36.  Pay  Thomas  Trenton  cash  from  drawer  for  delivering  mer- 
chandise to  city  customers  $2. 

37.  Thomas  Trenton  sold  and  delivered  to  you  his  horse  and 
wagon,  for  which  pay  him  by  check,  $210. 

Thomas  Trenton  will  enter  your  employ,  receiving  a salary  of  $13 
per  week.  Make  memorandum  on  detail  strip.  No  salary  payment  is 
made  at  this  time. 

38.  Pay  cash  from  drawer  for  horse  feed,  $2.10. 

39.  Pay  W.  Gammon  for  rent  of  stable  one  month,  $6.00  by  check. 

40.  Sell  Mrs.  M.  J.  Fletcher,  326  Archer  Avenue,  on  account,  4 
pa.  Rolled  Oats  @ 10c,  2 cans  Peaches  @ 25c,  1 bu.  Apples  @ $1.25,  5 
lbs.  Butter  @ 25c,  2 sacks  Flour  @ 75c,  20  lbs.  G Sugar  @ 6y2c,  2 lbs. 
Cheese  @ 15c. 

41.  Sell  Chas.  E.  Gordon,  617  Fifth  Avenue,  for  cash,  to  be  deliv- 
ered before  4 p.  m.,  25  lbs.  C Sugar  @ 5y2c,  2 doz.  Bananas  @ 15c, 
4 lbs.  Cheese  @ 15c,  1 bu.  Potatoes  @ 50c,  5 lbs.  Butter  @ 20c,  4 lbs. 
Java  Coffee  @ 35c,  8 y2  lbs.  Ham  @ 14c. 

42.  Sell  Charles  Daniels,  214  Seventh  Street,  3 pa.  Rolled  Oats  @ 
10c,  7 lbs.  Bacon  @ 12%c,  3 gals  Crystal  Syrup  @ 45e,  4 lbs.  Rio 
Coffee  @ 25c,  6 doz.  Eggs  @ 18c,  collecting  cash. 


13 


43.  Sell  Mrs.  J.  G.  Vance,  192  Third  Avenue,  7%  lbs.  Grapes  @ 
12c,  6 lbs.  Beans  @ 5c,  y2  lb.  Eng.  Breakfast  Tea  @ 55c,  10  lbs.  A 
Sugar  @ 6c,  6 cans  Corn  @ 16  2/3c,  1 gal.  Costal  Syrup  @ 45c,  2 
bunches  Radishes  @ 10c,  collecting  cash. 

44.  Collect  cash  from  Union  Hotel  Co.  on  account,  $30. 

45.  Collect  cash  from  Mrs.  M.  J.  Fletcher  on  account,  $5. 

46.  Pay  cash  for  produce,  $12.16. 

47.  Sell  City  Restaurant,  168  Second  Street,  for  cash,  to  be  deliv- 
ered at  once,  5 lbs.  Japan  Tea  @ 42c,  12  gals  Maple  Syrup  @ 62%c, 
12  lbs.  Mocha  Coffee  @ 37%c,  25  lbs.  Butter  @ 18c,  24  lbs.  Beans  @ 
4%c,  6 doz.  Lemons  @ 23c,  6 doz.  Bananas  @ 13e. 

48.  Buy  of  Western  Milling  Co.  merchandise  per  their  invoice, 
dated  Sept.  2,  terms  3/10,  amount  $19.80,  paying  by  check. 

49.  Pay  cash  for  repairing  window,  $1.50. 

50.  Sell  Union  Hotel  Co.,  316  Park  Avenue,  on  account,  60  cakes 
Ivory  Soap  @ 4y2c,  24  lbs.  Java  Coffee  @ 33  l/3c,  50  lbs.  Ham  @ 12y2c, 
6 doz.  Lemons  @ 20c,  100  lbs.  A Sugar  @ 5%c,  10  hds.  Cabbage  @ 8c, 
5 lbs.  English  Br.  Tea  @ 45c. 

51.  Prove  cash  and  make  daily  cash  and  charge  record. 

Do  not  include  the  cashier ’s  fund  in  the  amount  counted. 

As  soon  as  record  is  made,  total  all  columns,  of  the  cash  and  charge 
record,  that  is,  add  the  previous  total  to  present  amounts,  bringing  the 
totals  to  date. 

Deposit  all  cash  except  cashier’s  fund,  which  leave  in  cash  drawer. 

September  4. 

51.  Sell  T.  R.  Rich,  482  Fourth  Avenue,  6 lbs.  Prunes  @ 121/^c, 
2V2  lbs.  Cheese  @ 15c,  6 cans  Corn  @ 16  2/3c,  §y2  lbs.  Ham  @ 14c,  5 
lbs.  Rio  Coffee  @ 25c,  1 lb.  Japan  Tea  @ 45c,  collecting  cash. 

52.  Sell  C.  E.  Bonner,  219  Fourth  Avenue,  12  lbs.  Beans  @ 5c,  y2 
bu.  Turnips  @ 75c,  1 doz.  Lemons  @ 25c,  3 hds.  Cabbage  @ 10c,  12 
lbs.  Bacon  @ 12%c,  1 lb.  Cheese  @ 16c,  1 lb.  Butter  @ 18c,  collecting 
cash. 

53.  Pay  cash  from  drawer  for  produce,  $11.49. 

54.  Sell  J.  C.  Jackson,  457  Eighth  Street,  2 doz,  Bananas  @ 15c, 
9 lbs.  Bacon  @ 12%c,  2 sks.  Flour  @ 75c,  2 lbs.  Eng.  Breakfast  Tea  @ 
55c,  16  lbs.  G Sugar  @ 6%c,  3 lbs.  Mocha  Coffee  @.40c,  2 doz.  Oranges 
@ 25c,  collecting  cash. 

55.  Sell  Cyrus  Gordon,  422  Fourth  Street,  2 lbs.  Y.  H.  Tea  @ 

45c,  25  lbs.  A Sugar  @ 6c,  3 cans  Peaches  @ 25c,  6y2  lbs.  Ham  @ 14c, 

y2  bu.  Turnips  @ 75c,  5 lbs.  Mess  Pork  @ 9c,  collecting  cash. 

56.  Sell  to  cash  customer  2 lbs.  Mocha  Coffee  @ 40c,  2 lbs.  Java 
Coffee  @ 35c,  20  lbs.  G Sugar  @ 6y2 c,  12y2  lbs.  Ham  @ 14c,  iy2  bu. 
Potatoes  @ 50c,  3 cans  Corn  @ 16  2/3c,  collecting  cash. 

57.  Sell  Charles  E.  Gordon,  617  Fifth  Avenue,  for  cash,  25  lbs. 

A Sugar  @ 6c,  3 doz.  Eggs  @ 18c,  % bu.  Apples  @ $1.50,  1 bu. 

Potatoes  @ 50c,  1 sk.  Flour  @ 75c,  2 hds.  Lettuce  @ 5c. 

58.  Sell  Mrs.  M.  J.  Fletcher,  326  Archer  Avenue,  3 gals.  Maple 
Syrup  @ 75c,  5 lbs.  L.  Starch  @ 10c,  2 doz.  Lemons  @ 25c,  V2  lb. 
English  Breakfast  Tea  @ 55c,  2 bunches  Radishes  @ 10c,  2 sks.  Corn 
Meal  @ 45c,  on  account. 


14 


59.  Refund  B.  R.  Rich  25  cts.  overcharged  in  sale  to  him. 

60.  Sell  S.  L.  Johnson,  119  Second  Street,  for  cash,  18  lbs.  Bacon 
@ 12y2c,  6 lbs.  dried  Apricots  @ 15c,  5 lbs.  Butter  @ 22c,  2 lbs. 
English  Breakfast  Tea  @ 50c,  3 doz.  Lemons  @ 25c,  3 lbs.  Cheese  @ 
15c,  20  lbs.  C Sugar  @ 5c,  30  lbs.  Rice  @ 10c. 

61.  C.  E.  Bonner  returns  one  pound  of  cheese  which  he  reports 
unfit  for  use.  Refund  cash  for  the  amount  charged  on  sale  of  this  date. 

62.  Buy  of  Harmer  Packing  Co.,  invoice  dated  Aug.  30,  terms 
5/10,  amount  $50.50.  Enter  in  invoices  payable  but  do  not  pay  at 
present. 

63.  Buy  of  Fenton  Produce  Co.,  invoice  dated  Aug.  30,  terms 
2/10,  amount  $20.60. 

Enter  but  do  not  pay. 

64.  Sell  John  Thomas,  419  Grand  Avenue,  for  cash,  1 bu.  Apples 
@ $1.50,  5 lbs.  Butter  @ 24c,  12  lbs.  G Sugar  @ 6%c,  1 bu.  Potatoes 
@ 50c,  2 gals.  Crystal  Syrup  @ 35c,  4 doz.  Eggs  @ 18c,  2 lbs.  Japan 
Tea  @ 45c. 

65.  Prove  cash  and  make  daily  record.  Deposit  all  cash  on  hand 
except  cashier’s  fund. 

NOTE. — When  you  enter  deposit  on  check  stub,  you  will  find  that  a pre- 
vious deposit  has  been  made  since  a check  was  issued.  The  form  of  your  check 
stub  does  not  provide  space  for  two  consecutive  deposits  on  the  same  stub.  You 
will  be  expected  to  add  this  deposit  to  the  previous  balance,  entering  the  figures 
in  the  neatest  manner  that  occurs  to  you. 

One  way  to  do  so  is  to  cancel  the  check  record  at  the  top  of  stub,  remove 
and  destroy  the  check  blank,  carry  forward  to  the  next  stub,  then  enter  the 
deposit. 

September  5. 

66.  Sell  to  cash  customer  2 lbs.  Mocha  Coffee  @ 40c,  25  lbs.  A 
Sugar  @ 6c,  4 doz.  Eggs  @ 18c,  1 bu.  Apples  @ $1.50,  10  cakes  Ivory 
Soap  @ 5c,  y2  bu.  Onions  @ 95c,  collecting  cash. 

67.  Sell  to  A.  R.  Baker,  on  account,  3 doz.  Bananas  @ 15c,  2 sks. 
Table  Salt  @ 10c,  2 hds.  Lettuce  @ 5c,  11%  lbs.  Mess  Pork  @ 9c,  1 sk. 
Corn  Meal  @ 45c,  2 pa.  Rolled  Oats  @ 10c.  Collect  from  him  cash  on 
account,  $10. 

68.  Sell  Charles  E.  Gordon,  617  Fifth  Avenue,  for  cash,  to  be 
delivered  at  1 p.  m.,  25  lbs.  A Sugar  @ 6c,  5 lbs.  Java  Coffee  @ 31c,  7 
lbs.  Rice  @ 10c,  1 brl.  Apples  @ $3.25. 

69.  Sell  C.  D.  Fletcher,  219  First  Street,  3 doz.  Bananas  @ 15c, 
2 gals.  Crystal  Syrup  @ 45c,  4%  lbs.  Cheese  @ 15c,  20  lbs.  Mess  Pork 
@ 9c,  4 hds.  Cabbage  @ 10c,  2 bu.  Onions  @ 95c,  4 hds.  Lettuce  @ 5c, 
collecting  cash. 

70.  Buy  of  Dalton  & White,  invoice  dated  Sept.  5,  terms  2/10, 
amount  $66.25. 

Enter  but  do  not  pay  at  present. 

71.  Pay  Thomas  Trenton  cash  for  wages  to  date,  5/6  of  weekly 
wages  agreed  upon. 

72.  Sell  A.  R.  Cushman,  116  Ninth  Street,  5 lbs.  Grapes  @ 12c, 
16  lbs.  Rice  @ 10c,  8 lbs.  Rio  Coffee  @ 25c,  4 sks.  Flour  @ 75c,  16  lbs. 
Bacon  @ 12%c,  20  lbs.  G Sugar  @ 6y2c,  collecting  cash. 

73.  Sell  Union  Hotel  Co.,  and  charge,  1 bu.  Apples  @ $1.50,  5 


15 


lbs.  Butter  @ 24c,  12  lbs.  G Sugar  @ 6%c,  1 bu.  Potatoes  @ 50c,  2 
gals.  Crystal  Syrup  @ 35c,  4 doz.  Eggs  @ 18c,  2 lbs.  Japan  Tea  @ 45c. 

74.  Receive  from  Union  Hotel  Co.,  cash  $20  to  apply  on  account. 

75.  Sell  Mrs.  M.  J.  Fletcher,  326  Archer  Avenue,  on  account,  40 
lbs.  A Sugar  @ 5%c,  2 lbs.  Japan  Tea  @ 45c,  8 lbs.  Butter  @ 22%c,' 
3 hds.  Cabbage  @ 10c,  14  lbs.  Bacon  @ 121/2C,  2 gals.  Crystal  Syrup 
@ 45c. 

76.  Buy  of  Western  Milling  Co.,  invoice  dated  Sept.  5,  terms  3/10, 
amount  $22.60. 

Enter  but  do  not  pay. 

77.  Sell  E.  A.  Inman,  412  Fourth  Avenue,  20  lbs.  C Sugar  @ 
5 Y2C,  6 lbs.  Rio  Coffee  @ 25c,  2 gals.  N.  O.  Molasses  @ 50c,  12  lbs. 
Bacon  @ 12y2c,  2 lbs.  Y.  H.  Tea  @ 45c,  collecting  cash. 

78.  Refund  cash  30  cents  to  a cash  customer  for  overcharge. 

79.  Credit  Mrs.  M.  J.  Fletcher  for  the  butter  sold  her  in  Trans. 
75c,  which  she  has  returned. 

Record  on  credit  slip  and  detail  strip.  Amount  should  not  appear 
in  printed  column  of  figures  for  the  reason  that  this  machine  has  no 
mechanism  to  record  returned  goods.  Simply  register  “no  sale.” 

80.  Issue  check  for  $150,  payable  to  John  Boland,  Agt.  Cash 
Register  Co.,  in  payment  for  the  cash  register  which  you  are  using. 

Prove  cash,  enter  record,  and  deposit  all  cash,  including  cashier’s 
fund. 

Prepare  review  sheet  for  Part  One,  and  submit  outfit,  so  far  as 
used,  for  examination. 

^ PART  TWO-DOUBLE  ENTRY. 

Explanatory.  At  this  point  you  will  change  your  bookkeeping 
system  to  double  entry.  Your  present  single  entry  system,  while  it  is 
very  practical  and  easily  operated,  so  far  as  it  goes,  is  open  to  some 
criticisms.  For  example,  it  does  not  provide  for  accounts  of  property, 
of  merchandise  bought,  or  of  expenses.  These  things  may  be  carried 
in  mind  by  the  business  man,  but  if  his  business  is  to  grow,  they  would 
better  be  carried  in  accounts.  The  province  of  bookkeeping  is  to 
relieve  the  memory  of  every  essential  matter  that  can  be  recorded  in 
books. 

The  Books  Used.  A general  ledger  will  be  used  for  all  of  the 
general  accounts  of  the  business.  This  is  in  the  form  known  as  a 
four  column  balance  ledger,  an  account  from  which  is  illustrated  in 
Form  17  C. 

A customers’  three  column  balance  ledger  illustrated  in  Form 
17  D. 

A cash  journal  illustrated  in  Form  17  M. 

The  invoices  and  bills  payable  book  will  be  continued  as  here- 
tofore. 

Thu  di  tail  uUip-uill  be  u i4(  U il ~rr?,  lumlufuiP. 

Forms  Replaced.  The  daily  balance  slip  used  with  the  single 
entry  set  will,  owing  to  change  to  double  entry,  be  replaced  by  a 
Daily  Audit  Sheet  (see  Form  17  N).  This  sheet  serves  the  double  pur- 
pose of  calling  attention  to  records  to  be  made  of  all  transactions 


16 


involved  in  a normal  day’s  business,  and  of  arranging  their  aggregates 
in  balance-proof  form  suitable  for  a single  line  entry  per  day  in  the 
cash  journal.  This  sheet  should  be  studied  with  care  in  view  of  the 
labor  saving  involved  in  its  use,  as  well  as  of  the  assurance  it  affords 
that  the  entire  day’s  business  is  properly  recorded. 


CHANGING  TO  DOUBLE  ENTRY. 

September  7. 

To  change  any  single  entry  system  to  double  entry,  (1)  prepare  a 
financial  statement,  (2)  journalize  the  statement,  (3)  open  ledger 
accounts  and  post  the  journal  entry,  (4)  prove  posting  by  trial  balance. 

NOTE. — When  a ledger  in  use  by  single  entry  is  to  be  continued  by  double 
entry  the  accounts  already  standing  in  the  ledger  need  not  be  posted  again,  but 
should  be  compared  with  the  opening  entry. 

You  may  now  prepare  a financial  statement,  dated  Sept.  7.  The 
items  entering  into  this  statement  are  indicated  below : 


ASSETS. 


Cash  (as  shown  on  stub  of  check  book) 
Accounts  Receivable  (total  of  balances  on 
customers’  ledger) 

Inventory  of  merchandise 

5/6  rent  paid  on  store  and  stable 


/ >/  vy 

‘M.17 

$577.16 

30 


Furniture  and  Fixtures — cash  register  at  cost 
Shelving  & counters,  chairs,  etc. 
Delivery  Equipment — (horse  & wagon  at  cost) 


J7TAA, 

* • u WJ  U 

•2-/0,  CrC) 


? / w,  vz 
» L 

WT7.  / L 

■ 30,a~O  __ 

>s 

? 

? 


LIABILITIES. 

Accounts  Payable  (four  unpaid  invoices) 
Student,  Capital, 


? as  fife' 


Journalize  the  statement  (see  Form  17  M)  and  rule  across  the 
entire  page  as  shown. 

NOTE. — You  will  observe  that  the  opening  entry  is  in  the  same  form  as 
the  ordinary  two  column  journal.  Thus  this  many-column  journal  may  be  used 
like  an  ordinary  twTo  column  journal  for  opening,  closing,  and  unusual  entries. 

Cash  in  office  and  cash  in  bank  accounts  are  carried  in  the  journal, 
where  in  future  at  the  close  of  any  day’s  business  the  balances  may 
be  found.  Columns  1 and  2 show  currency  receipts  and  disbursements ; 
columns  3 and  4,  bank  deposits  and  checks. 

You  may  now  write  “ Balance”  in  the  first  line  below  the  ruling 
of  the  opening  entry,  and  debit  Col.  3,  crediting  Col.  6 for  the  bank 
balance  carried  down,  under  date  of  Sept.  7,  as  shown  in  the  model. 

Open  general  ledger  accounts,  one  page  each,  in  the  following 
order : Accounts  Receivable,  page  1 ; Bills  Receivable,  lower  third  of 
page  1 ; Inventory,  2 ; Furniture  and  Fixtures,  3 ; Delivery  Equipment, 
4 ; Accounts  Payable,  5 ; Bills  Payable,  lower  third  of  page  5 ; Student, 

<Uct  ^ _D 
to >1021 


/ ? . l 3 


■yT-.  (r  0 


Capital,  6;  Student,  Drawing,  lower  third  of  page  6;  Cash  Sales,  8; 
Charge  Sales,  9;  Purchases,  10;  Trading,  11;  Expense,  12;  Profit  and 
Loss,  14. 

NOTE. — This  general  ledger  will,  after  business  is  started,  be  used  for 
posting  only  once  a month  so  that  twenty  lines  per  year  for  each  account  would 
be  a fair  allowance.  If  you  intend  this  ledger  to  last  twenty  years,  space  the 
accounts  so  that  each  may  extend  to  a sufficient  number  of  pages  to  contain  400 
lines,  giving  ample  space  for  the  time  mentioned. 

Post  all  accounts  (except  hank  balance)  to  the  general  ledger. 

NOTE. — The  four  column  balance  ledger  has,  besides  the  two  first  money 
columns  for  entries,  two  additional  columns  for  balances.  Thus  in  Form  17  C, 
the  first  debit  entry  is  posted  to  the  debit  column  and  at  once  carried  to  the 
debit  balance  column.  The  second  entries  of  both  debits  and  credits  are  posted 
to  the  respective  columns,  then  the  debit  amount  is  added  to  the  last  balance, 
and  the  credit  subtracted,  leaving  a new  debit  balance. 

In  like  manner  when  an  account  has  a credit  balance,  the  balance 
is  carried  to  the  fourth  column. 

Bookkeepers  who  post  to  balance  ledgers  soon  acquire  proficiency 
in  mentally  carrying  out  the  balances. 

It  is  an  easy  matter  to  take  a trial  balance  from  a balance  ledger, 
because  the  amounts  are  always  in  readiness  to  be  copied  on  the  trial 
balance  sheet. 

Prepare  a trial  balance  of  the  opening  entry  by  copying  debit 
balances  (including  bank  balance  in  journal)  and  credit  balances. 

This  completes  the  opening  of  the  general  books. 

Accounts  With  Creditors  and  Customers.  You  will  continue  to 
enter  invoices  bought  in  the  invoices  and  bills  payable  book.  The  total 
of  these  invoices  unpaid  should  equal  the  balance  of  Accounts  Payable, 
the  controlling  account  in  the  general  ledger. 

Your  customers’  ledger  will  also  be  continued  as  opened.  The 
total  of  unpaid  balances  should  equal  the  balance  of  Accounts  Receiv- 
able, the  controlling  account  in  the  general  ledger. 

TRANSACTIONS. 

September  8. 

NOTE. — The  transactions  under  this  date  are  especially  diversified  owing 
to  the  purpose  to  illustrate  daily  audit  sheet  covering  all  points  at  the  close  of 
the  day. 

81.  Sell  to  Union  Hotel  Co.,  316  Park  Avenue,  on  account,  to  be 
delivered  at  once,  50  lbs.  Rice  @ 9%c,  20  lbs.  Beans  @ 41/2C,  40  lbs. 

C Sugar  @ 5^0,  12  cans  Peaches  @ 22y2c,  12  lbs.  Ham  @ 14c,  12  lbs. 
Java  Coffee  @ 33  l/3c,  5 gals.  Maple  Syrup  @ 75c.  / 9 , 

Lilli  i mi  ilnl  nil  hiyi  mrl  plnor  Orbit  rilip  in~drmrrr  m 1 1 T;rml 

82.  Sell  Mrs.  John  Leonard,  616  Fifth  Avenue,  10%  lbs.  Butter 
@ 22c,  20  lbs.  G Sugar  @ 6!/2C>  4 lbs.  Java  Coffee  @ 35c,  12  lbs.  Mess 
Pork  @ 9c,  3 bu.  Potatoes  @ 50c,  2 lbs.  Cheese  @ 15c,  collecting  cash.  7 

JEm-t-py  0V|  flptail-eiTip.  nnrl  pi  of>pr-nTrgh  irTrlrawpy  " 

83.  Sell  Henry  Kohler,  459  Sixth  Street,  on  account,  2 lbs.  Japan 

Tea  @ 45c,  15  lbs.  Ham  @ 14c,  8 lbs.  Grapes  @ 12c,  2 sks.  Flour  @ 
75c,  2 sks.  Corn  Meal  @ 45c,  6 hds.  Cabbage  @ 10c.  (#  ?(  (o 


18 


84.  Sell  A.  R.  Baker,  212  Second  Avenue,  on  account,  to  be 

delivered  at  2 p.  m.,  3 doz.  Oranges  @ 25c,  4 lbs.  Cheese  @ 16c,  2 lbs.  / y ^ 
Eng.  Breakfast  Tea  @ 55c,  6 cans  Peaches  @ 25c,  12  lbs.  Butter  @ 23c.  " 

85.  Pay  cash  for  horse  feed,  $6.35. 

86.  Refund  Mrs.  John  Leonard  50  cts.  for  one  bushel  potatoes 
short  in  goods  delivered  on  her  cash  order  today. 

The  Union  Hotel  Co.  returned  12  cans  peaches,  delivered  and 
charged  to  them  this  morning,  for  which  we  give  credit  at  the  price 
charged.  O 

Elaee-eredi  L "stip  in  di  a w cr . 

A.  R.  Baker  returns  3 doz.  oranges  delivered  and  charged  today, 
for  wlpch  give  him  credit.  m 7 ^ 

L^oJ.  Sell  N.  H.  Martin,  424  Third  Street,  6 cans  Peaches  @ 25c, 

4 sks.  Flour  @ 75c,  25  lbs.  A Sugar  @ 6c,  10  lbs  Butter  @ 22c,  collect- 
ing^e^sh.  V* 

88.  Sell  E.  H.  Preston,  195  Second  Avenue,  5 doz.  Eggs  @ 18c, 

% bu.  Apples  @ $1.50,  2 bu.  Potatoes  @ 50c,  5 cakes  Ivory  Soap  @ 5c, 

5 y2  lb^Butter  @ 22c,  12  lbs.  G Sugar  @ 6y2c,  collecting  cash.  Y Y7 
L^8T9.  Pay  The  Startzer  Printing  and  Stationery  Co.,  by  check 
$10.50,  for  office  books,  charging  expense. 

90.  Enter  two  invoices  bought: 

Reed-Miller  Co.,  dated  Sept.  8,  terms  2/10  n/30,  amount  $15.60. 

Oriental  Tea  Co.,  dated  Sept.  8,  terms  1/10  n/30,  amount  $49.55. 

Pay  by  cllteck  bill  for  office  bW)ks  presentefts^by  The  Startzer 
& Stationery  Co.,  charging  exp&mje. 
dake  two  pXrchases  on  account  i^'Reed  & Mill 


invoice 


7 for  mer> 


mvoice 


pay 


r7 


Landise  $15.60;  Orient^  Tea  Co., \per 
ft.  7,  merchandise  $49.55. 

you  have  completed  the  invoice  forms\enter  in  invoices 
egister,  showing  liate  on  which  payment  must  beViade  to 
secure  discount,  number  theta  and  place  invoices  in  clip  of\mpaid 
invoices. 

91.  Pay,  by  check,  to  John  Hess,  a gardener,  for  sundry  produce 

$17.25.  Y 7 

92.  Referring  to  invoices  and  bills  payable  book,  find  two  in-- 
voices  with  discount  periods  expiring  tomorrow.  Enter  checks  for  theC6^ 
net  amounts  and  enter  date  of  payment  on  the  invoices  payable  register. 

93.  Sell  T.  R.  Rich,  482  Fourth  Avenue,  6 lbs.  Java  Coffee  @ 35c, 

2 doz.  Oranges  @ 25c,  15  lbs.  Mess  Pork  @ 9c,  2 sks.  Flour  @ 75c,  4 
lbs.  Prunes  @ 12%c,  6 cans  Corn  @ 16  2/3c,  collecting  cash.  *5 

94.  Give  you  check  to  the  Michigan  Furniture  Co.  for  $18  to  pay 
for  an  office  desk.  Charge  Furniture  and  Fixtures. 

95.  Receive  cash  from  A.  R.  Baker  to  apply  on  his  account,  $5. 

96.  Pay  cash  from  drawer  for  sundry  produce,  $4. 

97.  Sell  to  Henry  Custer,  399  Center  Street,  on  account,  to  be 
delivered  before  3 p.  m.,  4 bu.  Potatoes  @ 55c,  4 hds.  Cabbage  @ 4y>c, 

10%  lbs.  Ham  @ 14c,  2 doz.  Lemons  @ 25c,  2 sks.  Flour  @ 75c,  24  lbs. 

C Sugar  @ 5%c,  % lb.  English  Br.  Tea  @ 50c,  4 doz.  Eggs  @ 17c.  & 


98.  Receive  from  him  a check  for  $7  on  account. 

You  jmilL-fi-nrl-^he  ohcok  iiT-commnnitv  cash  envelope, 
separate  slip  and  place  in  drawer. 


Make  out 


19 


99.  Sell^C.  E.  Peters,  498  First  Avenue,  16  lbs.  Ham  (d>  14c,  5 lbs. 

Apricots  (§)■  15c,  3 doz.  Lemons  @ 25c,  2 sks._Corn  Meal  @ 45c,  4 pa. 
Rolled  Oats  @ 9 receiving  his  check.  £7,- J 

100.  Deposit  cash,  including  two  checks  received,  $20.  Record 
on  detail  strip  “Pd.  $20  Deposit,”  and  place  the  deposit  in  community 
cush. 


AT  CLOSE  OF  DAY. 

Prove  and  enter  the  day’s  work,  as  follows:  Pate  a daily  audit 
sheet  (see  Form  17  N\  and  enter  amount  of  cash  in  drawer  as  usual. 

Assort  the  slips  in  drawer,  customers’  credit  slips,  customers’  charge 
slips. 

Enter  the  paid  out  items  in  the  division  of  the  daily  audit  sheet 
headed  “disbursements.”'  Write  all  amounts  in  the  first  column,  and 
also  extend  them  to  the  columns  headed  to  khow  the  purpose  of  the 
payments.  \ 

Separate  customers’  credit  slips  into  cash  and  returned  goods 
division  and  enter  in  the  customers’  credit  division  as  shown  in  the 
model  form.  \ 

From  the  totals  there  foufid  you  can  complete  the  cash  proof. 

After  cash  is  found  to  balance,  enter  all  checks  issued  in  the 
division  of  disbursements  reservW  for  checks  and  extend  the  amounts 
into  the  special  columns.  YouVwill  find  one  check  issued  for  an 
unusual  purpose.  Carry  this  to  the  last  column  and  write  the  ex- 
planation in  the  space  reserved  for  that  purpose. 

Enter  all  charge  sale  slips  in  the  space  reserved  for  that  purpose. 

From  the  invoices  payable  book  transfer  the  amounts  of  invoices 
entered  today  into  the  designated  column. 

Foot  all  columns,  carrying  the  total  of  disbursements  for  pur- 
chases below  the  total  of  invoices  entered  as  shown  in  the  form. 

Proof.  Beginning  at  the  top,  carry  all  totals  preceded  by  guide 
figures  to  the  spaces  in  the  “proof  totals”  section  of  the  sheet,  as 
shown  in  the  form.  This  reduces  the  entire  day’s  work  to  a compound 
journal  entry.  Foot  both  proof  columns  to  show  in  balance. 

Journalize.  Transfer  the  proof  totals  to  the  journal  in  the 
columns  indicated  by  the  guide  figures.  See  Form  17  M.  You  will 
note  that  one  item  carried  to  the  general  column  requires  title  for 
posting  to  general  ledger. 

Customers’  Ledger.  With  customers’  charge  and  credit  slips  in 
hand,  post  to  the  accounts  in  the  customers’  ledger. 

September  9. 

Place  the  caslhscarrie&over  in  the  cash  drawer  and  with  it  a ticket 
“Carried  from  yesterday*  $14.14, ” with  “No  sale”  record. 

101.  Pay  cash  for  sundry  produce,  $5. 

102.  Sell  Mrs.  E.  M.  Sawyer,  419  Third  Street,  15  lbs.  C Sugar  @ 

5!/2C,  6 lbs.  Bacon  @ 5c,  5 lbs.  Rio  Coffee  @ 25c,  2 gals.  Crystal  Syrup 

@ 45c,  2 doz.  Bananas  @ 15c,  1 lb.  Y.  H.  Tea  @ 50c,  collecting  cash.  ¥,o\ 

103.  Sell  C.  E.  Gordon,  199  Third  Street,  4 bu.  Potatoes  @ 50c, 

2 bu.  Turnips  @ 75c,  5 lbs.  L.  Starch  @ 10c,  16  lbs.  Bacon  @ 121/£c, 


20 


12  cans  Corn  @ 16  2/3c,  5 doz.  Eggs  @ 19c,  5 lbs.  Coffee  @ 26c,  receiv- 
ing his  check.  J (j  "is 

104.  Sell  John  Thomas,  419  Grand  Avenue,  or.  account,  to  be 
delivered  at  once,  16  lbs.  Bacon  @ 13c,  3 lbs.  Apricots  @ 17c,  y2  bu. 
Apples  @ $1.50,  4 y2  lbs.  Butter  @ 20c,  2 lbs.  Mocha  Coffee  @ 40c,  25 
lbs.  A Sugar  @ 6c,  2 gals.  Maple  Syrup  @ 75c,  y2  bu.  Turnips  @ 85c. 

105.  Deposit  all  cash  in  drawer  except  $3.47. 

106.  Buy  of  Murdock  & Co.,  per  invoice  dated  Sept.  4,  amount 

$50.65,  of  which  $16.15  is  billed  on  terms  1/10  n/30,  and  $34.65  on 
terms  2/10  n/60.  &0 

107.  Receive  from  Mrs.  M.  J.  Fletcher,  cash  on  account,  $10. 

108.  Sell  the  Union  Hotel  Co.,  316  Park  Avenue,  on  account  to 

be  delivered  at  once,  25  lbs.  Butter  @ 19c,  6 doz.  Eggs  @ 18c,  5 bu. 
Potatoes  @ 55c,  100  lbs.  C Sugar  @ 5 y2c,  6 lbs.  Mocha  Coffee.  @ 37c, 
10  lbs.  Raisins  @ lO^c,  8 lbs.  Cheese  @ 15c.  ' ^ f 

109.  Buy  of  Garver  Grocery  Co.,  per  invoice  dated  Sept.  9, 

amount  $61.58,  of  which  $47.78  is  on  terms  1/10  n/30  and  $13.80  on 
terms  2/10  n/60.  — 

110.  Pay  cash  from  drawer  for  sundry  produce,  $6.38. 

111.  Sell  A.  R.  Baker,  212  Second  Street,  on  account,  to  be 
delivered  before  3 p.  m.,  8 y2  lbs.  Ham  @ 14c,  4 pa.  Rolled  Oats  @ 10c, 
4 cans  Peaches  @ 25c,  2 doz.  Eggs  @ 18c,  24  j^s.  A Saigar  @ 614c, 
2 sks.  Flour  @ 75c. 

112.  Pay  cash  for  sundry  produce,  $1.25. 

113.  Sell  Mrs.  M.  J.  Fletcher,  326  Archer  Avenue,  on  account,  to 

be  delivered  before  2 p.  m.,  2 doz.  Bananas  @ 15c,  3 lbs.  Laundry 
Starch  @ 8 l/3c,  6 lbs.  Java  Coffee  @ 33  l/3c,  2 gals.  N.  O.  Molasses 
@ 40c,  10  lbs.  Beans  @ 4%c,  6 lbs.  Bacon  @ 12%^  3 doz.  Eggs  @ 18c, 
2 lbs.  Raisins  @ 12c.  y 33 

114.  Pay  cash  for  cleaning  floors  of  store  room,  $1.50. 

115.  Sell  Mrs.  J.  G.  Vance,  192  Third  Avenue,  6 lbs.  Java  Coffee 

@ 35c,  8 lbs.  Rice  @ 10c,  4 gals.  N.  O.  Molasses  @ 50c,  12  lbs.  Mess 
Pork  @ 11c,  collecting  cash.  /^  ^ 7^ 

116.  Sell  A.  R.  Baker,  212  Second  Street,  on  account,  to  be 

delivered  by  1 p.  m.,  16  cans  Corn  @ 16  2/3c,  10  cakes  Ivory  Soap  @ 5c, 
4 doz.  Eggs  @ 15c,  25  lbs.  A Sugar  @ 6c,  2 sks.  Corn  Meal  @ 45c,  50 
lbs.  Bacon  @ 12y2o,.  j Lj,  ^ 

117.  Sell  John  Thomas,  419  Grand  Avenue,  on  account,  to  be 

delivered  at  once,  4 hds.  Lettuce  @ 5c,  2 bunches  Radishes  @ 10c,  1 bu. 
Apples  @ $1.25,  7%-lbs.  Ham  @ 15c,  3 doz.  Eggsjg)  18c,  5 lbs.  Butter 
@ 22c,  14  lbs.  G Sugar  @ §y2a.  \5 , 3 7 

118.  Sell  T.  R.  Rich,  482  Fourth  Avenue,  6 lbs.  Java  Coffee  @ 
35c,  2 doz.  Oranges  @ 25c,  15  lbs.  Mess  Pork  @ 9c,  2 sks.  Flour  @,75e, 
4 lbs.  Prunes  @12%c,  6 cans  Corn  @16  2/3c,  collecting  cash.  £ y 

119.  Sell  James  Armstrong,  127  Third  Street,  20  lbs.  A Sugar  @ 
6c,  6 cans  Peaches  @ 25c,  2 lbs.  Japan  Tea  @ 45c,  4 y2  lbs.  Butter 
22c,  3 lbs.  Prunes  @ 12y2c,  2 hds.  Cabbage  @ 10c,  collecting  cashes  j 

120.  Prepare  daily  audit  sheet  and  complete  day  ’s  records  as  in 
VErans.  100. 


21 


September  10. 

~ Place  cash  from  yesterday  indr  awer~writh  -tiekeL  Register  “No 

- sale.” 

121.  Buy  of  Central  Grocery  Co.,  per  invoice  dated  Sept.  8, 

amount  $72.41,  of  which  $54.]  1 is  on  terms  1/5  n/30,  and  $18.30  on 
terms  2/5  n/60.  - 

122.  Collect  cash  from  Mrs.  M.  J.  Fletcher  in  full  of  account.  If 

123.  Sell  to  Chas.  E.  Gordon,  617  Fifth  Avenue,  on  account,  to 

be  delivered  before  2 p.  m.  4 gals.  N.  0.  Molasses  @ 44c,  2 bu.  Potatoes 
@ 55c,  4 lbs.  Prunes  @ 12%c,  % doz.  Lemons  @ 25c,  12  lbs.  G Sugar 
@ 6y2c,  3 doz.  Eggs  @ 18c,  5 lbs.  Rice  @ 15c.  ^ 

124.  Collect  cash  from  A.  R.  Baker,  $20,  on  account. 

125.  Sell  Henry  Custer,  399  Center  Street,  on  account,  3 hds. 
Cabbage  @ 11c,  1 bu.  Potatoes  @ 50c,  2 hds.  Lettuce  @ 5c,  25  lbs.  A 
Sugar  @ 6c,  3 doz.  Eggs  @ 18c,  1 sk.  Corn  Meal  (a)  45c,  10  lbs.  Pork 
@ 12e,  2 doz.  Bananas  @ 15c. 

126.  Deposit  all  cash  except  $5. 

127.  Sell  Cyrus  Upton,  498  First  Avenue,  50  lbs.  C Sugar  (a)  5^0, 

10  lbs.  Rio  Coffee  @ 24c,  1 lb.  Y.  H.  Tea  @ 45c,  12%  lbs.  Ham  @ 14c, 
y2  bu.  Apples  @ $1.50,  collecting  cash. 

128.  Pay  cash  for  sundry  produce,  $9.25. 

129.  Sell  the  Union  Hotel  Co.,  316  Park  Avenue,  on  accountv12 

doz.  Eggs  @ 18c,  40  lbs.  Butter  @ 20c,  ]0  bu.  Potatoes  @ 50c.  / v57  / 4 

130.  Sell  N.  H.  Martin,  424  Third  Street,  2 doz.  Eggs  @ 18c,  4 
gals.  Maple  Syrup  @ 75c,  12  lbs.  Bacon  @ 12y2c,  4 lbs.  Java  Coffee  @ 

35c,  24  lbs.  A Sugar  @ 6c,  collecting  cash.  7,76 

131.  Receive  from  Union  Hotel  Co.,  check  for  $53  to  apply  on 
account. 

132.  Sell  T.  R.  Rich,  482  Fourth  Avenue,  % bu.  Turnips  @ 75c, 

4 lbs.  Cheese  @ 15c,  2 sks.  Corn  Meal  @ 45c,  4 lbs.  Prunes  @ 12%c,  5 
lbs.  Butter  @ 22c,  20  lbs.  G Sugar  @ 6%c,  collecting  cash, 

133.  Pay  cash  for  sundry  produce,  $5. 

134.  Collect  cash  of  John  Thomas  in  full  of  account^  giving  a 

receipted  sale  slip  as  usual.  / o 0 

135.  Deposit  all  cash  in  register,  except  $10  kept  for  change. 

136.  Make  the  following  small  cash  sales:  10  cts.,  25  cts.,  50 
cts.,  25  cts.,  11  cts. 

137.  Sell  E.  M.  Webster,  212  Fourth  Street,  15  lbs.  G Sugar  @ 

6y2 c,  2 sks.  Flour  @ 75c,  12  lbs.  Ham  @ 14c,  4 lbs.  Cheese  @ 15c, 
collecting  cash.  V.7  L 

138.  Sell  Charles  E.  Gordon,  617  Fifth  Avenue,  on  account,  to  be 

delivered  at  1 p.  m.,  25  lbs.  A Sugar  @ 6c,  5 lbs.  Java  Coffee  @ 31c,  10 
lbs.  Rice  @ 10c,  1 brl.  Apples  @ $3.25.  1,36 

139.  Collect  cash  from  A.  R.  Baker,  $10,  on  account. 

140.  Paid  cash  for  sundry  produce,  $5.53. 

Prepare  daily  audit  sheet  and  compiete~tFe~dayrs 'records  as  in 
Trans— 


22 


September  11. 

^reav^aslrffrom11  yesterday  in  cash  drawee make  ticket  as 
usual. 

141.  Sell  to  Mrs.  M.  J.  Fletcher,  326  Archer  Avenue,  on  account,/*  7 U 

6 lbs.  Prunes  @ 12%c,  2 % lbs.  Cheese  @ 15c,  6 cans  Corn  @ 16  2/3c,  * 

6%  lbs.  Ham  @ 14c,  5 lbs.  Rio  Coffee  @ 25c,  1 lb.  Japan  Tea  @ 45c.  ^ 

142.  Sell  to  John  Thomas,  419  Grand  Avenue,  on  account,  4 bu. 

Potatoes  @ 50c,  2 bu.  Turnips  @ 75c,  5 lbs.  L.  Starch  @ 10c,  16  lbs. 

Bacon  @ 12%c,  12  cans  Corn  @ 16  2/3c,  5 doz.  Eggs  @ 19c,  5 lbs. 

Coffee  @ 26c.  /0*  T'S' 

143.  Sell  to  cash  customer,  with  sales  slip,  2 lbs.  Mocha  Coffee 

@ 40c,  2 lbs.  Java  Coffee  @ 35c,  20  lbs.  G Sugar  6% c,  12%  lbs.  Ham  , 

@ 14c,  1%  bu.  Potatoes  @ 50c,  3 cans  Corn  @ 16  2/3c,  collecting  cash.'*-*,  0 

144.  Buy  of  Ladd  Packing  Co.,  per  invoice  dated  Sept.  11,  terms 
1/10  n/30,  amount  $27.46. 

145.  Pay  cash  for  sundry  produce,  $3.50. 

146.  Give  John  Thomas  credit  for  75  ct§.,  the  price  of  1 bu. 
Turnips  short  in  his  order,  Trans.  142. 

147.  Mrs.  M.  J.  Fletcher  returns  6 cans  Corn  delivered  in  Trans_ 

141,  for  which  give  credit.  / 

149.  Hand  a cash  customer  50  cts.  in  settlement  of  his  claim  that 
you  sold  him  three  cans  of  spoiled  corn. 

150.  Pay  by  check  to  E.  C.  Hobel  for  a set  of  scales  for  store  use, 

$18.25.  

Prepare  daily  'audit  sheet  and  complete  Jhe  day’s  records  as  in 
Trans.  100. 

Saturday,  September  12. 

Place  cash  Trom  yesterday  in  drawer"a"s  ustral. 

151.  Sell  Henry  Kohler,  on  account,  10%  lbs.  Butter  @ 22c,  20 
lbs.  G Sugar  @ 6%c,  4 lbs.  Java  Coffee  @ 35c,  12  lbs.  Mess  Pork  @ 

9c,  3 bu.  Potatoes  @ 50c,  2 lbs.  Cheese  @ 15c.  7 .93 

152.  Sell  Charles  E.  Gordon,  on  account,  2 lbs.  Japan  Tea  @ 45c, 

15  lbs.  Ham  @ 14c,  8 lbs.  Grapes  @ 12c,  2 sks.  Flour  @ 75c,  2 sks. 

Corn  Meal  @ 45c,  6 hds.  Cabbage  @ 10c.  6.  V 

153.  Collect  cash  from  Union  Hotel  Co.,  in  full  of  account.  n.tou 

154.  Make  sundry  cash  sales — 59c.,  $1.48,  $5,  $2.50,  5 cts,  $1.05 -/ q 

155.  Pay  for  sundry  produce  $3.10.  ^ 

156.  Look  over  invoices  payable,  register  and  find  one  invoice 
which  should  be  paid  by  Sept.  13,  to  secure  discount.  Draw  check 
for  net  amount  and  pay  it.  Observe  that  you  are  entitled  to  1%  on 
part  of  this  invoice,  and  2%  on  the  remainder. 

157.  Pay  cash  for  small  expense  items,  40  cts. 

158.  Give  Union  Hotel  Co.  credit  for  returned  goods,  10  lbs. 

Butter  @ 20  cts.  1X^6  ^ 

159.  Give  Henry  Custer  credit  on  account,  for  5 days’  clerk  hire 

at  $1.50.  7.^6 

In  order  record  of  this  transaction,  which 

is  out  of  the  ordinaryTm^advisable  that-  you  treat  it  as  a cash  pay- 


f L / b 
\*JL 


/ 4 

mem,  3to 


£>  9 o O 


SO.  (oS 

VS' 


me* 
account. 


t6 

Henry  Custer  for^jvages, 

This  will  require  tworecol 
slip  in  the  drawer. 

160.  Make  the  following  cash  sales, 
20  cts.,  25  cts.,  $2.07,  21  cts.,  $2. 

Complete  the  day’s  records. 


receipt  from  him  on 
Le  detail  strip,  and  a credit 

without  sales  slips : 5 cts., 


NOTE. — You  will  find  credits  to  two  customers’  accounts  that  overpay, 
leaving  balances  in  their  favor.  In  the  account  of  Henry  Custer,  the  credit  bal- 
ance of  $1.48  should  be  placed  in  the  balances  column  in  red  ink.  Likewise  any 
accounts  overpaid  should  show  the  balance  in  red  instead  of  black  ink. 


POSTING. 


It  is  the  usual  rule  to  post  special  column  totals  to  the  ledger  at 
the  close  of  the  month’s  business.  In  the  present  set,  you  are  given 
the  same  practice  by  posting  at  the  close  of  the  week’s  business.  In 
order  to  have  journal  room  for  closing,  forward  all  column  totals  of 
the  journal  krem-follo-^  to  folio  1, -rising  red  ink  or  pcTrcrt~~ 

Write  the  special  column  headings  in  the  title  space,  beginning 
with  Cash,  Bank,  Accts.  Rec.,  etc.  (See  form.)  Place  the  cash  and 
bank  balances  in  the  general  debit  column  opposite  the  titles,  and  place 
the  totals  of  all  other  special  columns  opposite  their  titles  in  the  general 
columns. 


Foot  the  general  columns  and  rule  the  journal. 

Transfer  cash  and  bank  balances  out  of  the  general  into  the 
special  columns  below  the  ruling  as  you  transferred  the  bank  balance 
at  the  opening  entry.  Place  total  of  cash  and  bank  in  general  credit 
column  below  the  ruling. 

Post  all  amounts  found  in  the  general  columns  to  their  respective 
accounts  in  the  general  ledger,  debits  and  credits  on  the  same  line,  and 
balances  Carried  to  balance  columns. 


Prepare  a trial  balance,  using  cash  and  bank  balances  found  in 
journal,  and  other  balances  found  in  general  ledger. 

Caution.  Your  general  ledger  ends  on  page  14.  Customer’s 
accounts  following  are  not  included  in  the  trial  balance,  since  their 
aggregate  is  already  included  in  the  Accounts  Receivable  on  page  1. 


September  14. 


^cawrh  1 carried  over  in  diJTrer  with  ticket. 

^161.  The  discount  period  expires  today  on  one  invoice.  Pay  it 

by  check™*"1  ’ - — . — ' 

162.  Make  cash  sales,  without  billing,  as  follows:,  5 cts.,  20-  cts., 
$3.10,  $1.50,  $4,  29  cts,  $3.40,  $10,  $4.50.  1-**  y 0 V 

163.  Pay  cash  for  stationery,  75  cts.  •%xPr 

164.  Sell  Union  Hotel  Co.  on  account,  25  -fbsUASugar  @ 6c,  10 

lbs.  Butter  @ 22c,  6 cans  Peaches  @ 25c,  4 sks.  Flour  @ 75c.  Y.'HO 

165.  Deposit  all  cash  except  $10  carried  over. 

CwnplCtl1  Un  din  ?,s  j eTOTllS  ' 


NOTE. — The  Union  Hotel  Co.’s  account,  after  posting,  will  show  a debit 
balance  ( black  ink ) . 

Sr  i>'. 


24 


-W  I^.Cp  0 


7 ,3  S O 

September  15. 


166.  Pay.  cash  to  Thomas  Trenton,  who  has  worked  three  days 

since  last  payment,  for  one-half  week’s  wages  at  the  rate  agreed  upon 
September  3.  (o , b 

167.  Having  discounted  at  the  bank  your  note  for  $100,  drawing 
interest  at  6 per  cent  from  maturity,  make  record  in  invoices  and  bills 
payable  book  (red  ink),  also  enter  in  journal  showing  deposit  for 
proceeds  after  deduction  of  bank  discount  for  60  ds.  at  6 per  cent. 
DebRJExpense  for  discounts 

r / 168.  Glance  over  invoice  payable  register,  and  pay  by  check  all 
invoices  having  discount  expirations  today ..  ^(2  7<J  ^ (37+) 

^169.  Pay  cash  for  sundry  produce  $2.10. 

170.  Make  sundry  cash  sales  without  tickets  as  follows : 5 cts.,  . . 
10  cts.,  25  cts.,  3 cts.,  10  cts.,  50  cts.,  11  cts.,  15  cts.,  $1.10,  5 cts. 
i/'  171.  Sell  to  Mrs.  M.  J.  Fletcher,  on  account,  6 lbs.  Java  Coffee 
@ 35c,  8 lbs.  Rice  @ 10c,  4 gals.  N.  O.  Molasses  @ 50c,  12  lbs.  Mess 
Pork  _(5)  11c.  /^.  *7^ 


<<f72. 

173. 
cts. 

174. 

175. 


h 


Receive  cash  from  Henry  Kohler  in  full  of  account.  / 
Make  sundry  cash  sales  without  tickets : 10  cts.,  15  cts., 

^ 7 

Deposit  all  cash  except  $10  for  change. 

Complete  the  day’s  records. 

You  are  about  to  admit  a partner.  Before  doing  so,  it  is  advis- 
able to  close  the  books.  Transfer  special  columns  to  general  column  of 
journal,  rule,  carry  cash  and  bank  columns  down  and  post  as  in- 
structed under  “Posting”  on  Sept.  12. 

Prepare  a trial  balance,  and  compare  Accounts  Receivable  and 
Accounts  Payable  totals  with  the  list  of  balances  from  the  customers’ 
ledger,  and  of  unpaid  invoices  in  the  invoices  payable  book.  Re- 
adjust the  ledge^  by  journal  entry,  closing  the  amount  of  merchandise 
standing  in  the  Inventory  account  into  the  debit  of  Trading  account, 
and  the  amount  of  expense  standing  in  Inventory  account  into  the 
Expense  account,  and  debiting  the  Inventory  account  for  the  present 
value  of  merchandise  in  stock,  $689.26,  crediting  Trading  account,  and 
debiting  Inventory  for  one-half  month  rent  unexpired,  $18,  crediting 
Expense  account. 

Prepare  financial  and  profit  and  loss  statements.  (See  Form  13  J.) 

Close  the  nominal  accounts  into  Profit  and  Loss.  Close  Profit  and 
Loss  account  and  all  except  $1,000  out  of  your  capital  account,'  into  a 
personal  drawing  account. 

fhrpnro  rryi^w  fillet  fmL.Pn^Tu)ll-Uml  nilnnit  V»nnUn 

’for  f^ffmiirintinn 


PART  THREE. 


September  16. 

You  will  now  form  a partnership  with  David  R.  Newton  under 
the  following  agreements: 

The  firm  name  shall  be  (your  name)  and  Newton.  Mr.  Newton 
invests  $1,000  in  cash  to  equal  your  capital  of  $1,000  invested  as 


25 


shown  by  the  books.  Both  partners  are  to  give  their  entire  time  and 
attention  to  the  business  and  to  share  gains  and  losses  equally. 

Receive  the  cash  investment,  journalize  the  transaction  (see  Form 

on 


^ Record  on  stub  of  check  book  your  personal  check  for  the  amount 
of  your  bank  balance,  in  favor  of  (your  name)  and  Newton. 

Enter  in  stub  of  check  book  the  deposit,  also  make  journal  entry 
crediting  Mr.  Newton’s  capital  account. 

In  the  future,  the  office  work  will  be  divided.  Mr.  Newton  will 
have  charge  of  purchases,  sales,  and  all  routine  transactions  of  the 
business,  including  deposits  and  checks.  He  will  keep  the  invoice 
book  and  customers’  ledger. 

He  will  open  a customers’  ledger  of  larger  capacity  than  the  one 
now  used,  which  will  be  called  “ Customers’  Ledger  B.”  He  will 
transfer  into  this  ledger  all  of  the  present  open  account  balances.  You 
may  now,  comparing  with  the  list  of  customers’  balances  previously 
made,  enter  a red  ink  credit  in  all  customers’  accounts  in  your  pres- 
ent ledger,  called  Customers’  Ledger  A;  balance  the  accounts  with 
explanation,  ‘ ‘ Bal.  to  Ledger  B,  ’ ’ and  rule  lines  across  money  columns. 

You  will  have  charge  of  all  business  transactions  which  are  out  of 
the  ordinary  business  routine.  You  will  also  prepare  the  daily  audit 
sheet,  and  make  journal  and  general  ledger  entries.  At  closing,  Mr. 
Newton  will  prepare  lists  of  customers’  and  creditors’  accounts,  in- 
ventories, etc. ; you  will  prepare  business  statements  and  close  the 
books.  From  the  items  in  Mr.  Newton’s  report  of  cash  on  hand,  sales, 
credit  and  paid  out  slips,  invoices  entered,  checks  issued,  and  cash 
register  reading,  you  will  make  up  the  audit  sheet. 

Date  a daily  audit  sheet,  and  enter  from  the  following  memo- 
randa : 0 , 

Cash  in  drawer  counted,  $11.11 ; cash  receipts  per  adding  counter, 
$59.76. 

Paid  out  items : Expense  15  cts.,  Refund  $1.50,  Purchase  $3,  De- 
posit $50. 

Charge  customers’  credits:  Cash  $10,  $12.50,  $5;  Return  Goods 
$3.10. 

Charge  sales : $3.50,  $5.11,  $3.78,  $9.21,  $4.56,  $6.51,  $3.29,  $4.22, 
$6.31,  $1.30,  78  cts,,  50  cts.,  48  cts.,  $3.51,  $4.29.  . w - 

Invoices  entered:  $45.10,  $4.08. 

Checks  issued:  None. 

The  cash  in  drawer,  plus  payments,  less  cash  carried  over  from 
yesterday,  amounts  to  $55.76.  Cash  receipts  as  shown  by  adding 
counter  amount  to  $59.76.  Mr.  Newton  is  short  $4. 

Mr.  Newton  should  use  every  effort  to  locate  this  shortage.  In 
the  present  instance  he  is  unable  to  do  so.  .A  permanent  record 
in  an  account  entitled  “Cash  Short  and  Over,”  opened  on  ledger 
page  13,  will  be  kept.  Memoranda  of  discrepancies  in  cash  are 
often  kept  on  the  audit  sheet  only.  In  the  present  set,  cash  sales  are 
to  be  credited  on  the  basis  of  the  records  made  in  cash  register. 


26 


Should  the  cash  sales  records  call  for  more  or  less  cash  than  is  actually 
on  hand,  the  difference  must  need  be  accounted  for  in  the  journal 
entry,  and  posted  to  the  ledger. 

Place  the  amount  short  in  the  proper  space  of  audit  sheet,  and 
carry  it  to  the  column  indicated  in  Proof  Totals. 

Complete  the  daily  audit  sheet,  and  transfer  totals  to  journal. 

Write  “Cash  Short”  in  title  column  of  journal  and  post  the 
amount. 


September  17. 

Prepare  daily  audit  sheet  and  journal  entry  from  the  following : 
Cash  in  drawer  counted,  $29.83;  Receipts  per  adding  counter, 
$61.22. 

Paid  out  items : Expense  25  cts.,  25  cts. ; Purchases  $2 ; Deposit 

$40. 

Charge  customers’  credits:  Cash  $10,  $13,  $25.  $3.45. 

Charge  sales:  $4.53,  $6.62,  $1.58,  $3.03,  $4.68,  $8.34,  $4.50,  35  cts. 


b V 


$6.50,  $1.56,  $1.53,  20  cts.,  $1.57,  $4.31,  $4.55. 
Invoices  entered:  $67.53,  $44.21,  $2,  $69.65. 


3 


September  18. 

Prepare  daily  audit  sheet  and  journal  entry  from  the  following: 

Cash  in  drawer  counted,  $13.29;  Receipts  per  adding  counter, 
$75.07. 

Paid  out  items:  Expense  44  cts.,  Purchases  $3.02,  Furniture  and 
Fixtures  (office  chair)  $7.85,  Deposit  $80,  Refund  30  cts. 

Charge  customers’  credits:  Cash  $40,  $31.55;  Return  goods  33 
cts.  and  $1.76. 

Charge  sales:  $5.45,  $3.21,  $6.77,  $11.55,  $20.18,  78  cts.,  $5.40, 
$3.33,  $1.65,  30  cts.,  $5.77. 

Invoices  entered:  $144.56,  $33.73,  $5.10.  , 

Saturday,  September  19. 

Prepare  daily  audit  sheet  and  journal  entry  for  the  following : 

Cash  in  drawer  counted,  $21.47 ; Receipts  per  adding  counter, 

$139.27. 

Paid  out  items : Purchases  $2.35  and  $4.11,  Deposit  $125,  Expense 
23  cts.  and  15  cts. 

Checks  issued:  Nos.  1 to  4,  for  accounts  payable,  check  $44.65, 
invoice  $45.10,  cash  discount  45  cts. ; check  $4,  invoice  $4.08,  cash  dis- 
count 8 cts. ; for  Purchase,  $27.80 ; for  Expense,  $15. 

Charge  customers’  credits:  Cash  $3.50,  $5,  $35.71,  $40.  $10.60;  Re- 
turn goods  44  cts.,  $1.78. 

Charge  sales:  $4.32,  $5.45,  $6.27,  $3.81,  $5.54,  $25.71,  $60.23, 
$14.42,  38  cts.,  $4.51,  $1.56,  $3.29,  $4.77,  $2.91,  $3.45,  $4.26,  $20.88, 
$1.43,  $4.27,  $2.66,  $5.41^4.29,  $3.77,  $10.62.  q y o 

Invoices  entered:  $111.80,  $33.40,  $12.67,  $57.80. 

NOTE. — Posting  to  general  ledger  is  done  weekly  in  the  present  set,  al- 
though in  business  it  would  be  done  monthly. 


n- 


The  student  should  aim  to  acquire  ease  in  extending  ledger  bai- 

v " , i 

. . V; 


1 


I 


ances  mentally.  The  calculation  is  quite  easily  done  by  first  determin- 
ing the  difference  between  the  debit  and  credit  posted  on  the  same 
date,  and  then  uniting  that  difference  with  the  previous  balance. 

Thus,  suppose  an  account  shows  a debit  balance  of  $321.80  before 
posting.  A debit  of  $49.16  and  a credit  of  $20.10  are  posted. 

It  is  much  easier  to  perform  mentally  the  process:  $49.16  — $20.10 
= $29.06  + $321.80  — $350.86,  than  to  perform  mentally  the  other 
process  ordinarily  used  by  beginners:  $321.80  + $49.16  = $370.96  — 
$20.10  = $350.86.  The  advantage  is  very  apparent  when  computing  , 
large  numbers. 

Mr.  Newton,  in  addition  to  his  other  work,  will  from  now  on  make 
up  the  daily  audit  sheet.  This  will  leave  as  your  work,  the  transfer- 
ence of  proof  totals  to  journal  and  the  posting  to  the  general  ledger. 
You  will  also  make  direct  journal  entries  for  any  unusual  transactions. 
Journalize  the  following  proof  totals  from  daily  audit  sheet: 

(1)  $78.39,  (2)  $84,  (3)  $75,  (4)  $120.58,  (7)  $59.63,  (8)  $39.50, 

(9)  $121.80,  (10)  $34.16,  (11)  $1,  (12)  $38.89,  (14)  $59.63,  (15)  $40.16, 
(16)  $1.22,  (17)  $2. 

September  22. 

Journalize  the  following  proof  totals  from  daily  audit  sheet: 

(1)  $92.16,  (2)  $86.51,  (3)  $80,  (4)  $21.50,  (5)  Cash  short  $1,  (7) 
$32.90,  (8)  $33.15,  (9)  $21.72,  (10)  $20,  (11)  50  cts.,  (12)  $60.21,  (13) 

20  cts.,  (14)  $32.90,  (15)  $23.11,  (16)  22  cts.,  (17)  $2.90. 

Do  not  neglect  journal  column  totals  in  red  ink. 

September  23. 

Journalize  proof  totals  from  daily  audit  sheet: 

(1)  $130.28,  (2)  $136.16  (3)  $120,  (4)  $100.75,  (7)  $60.05,  (8) 
$59.26,  (9)  $72.19,  (11)  60  cts.,  (12)  $71.02,  (14)  $60.05,  (15)  $42.16, 
(16)  $1.44,  (17)  $3.40. 

September  24. 

Daily  audit  sheet : 

(1)  $37.20,  (2)  $25,  (3)  $25,  (4)  $13.75,  (5)  Delivery  Equipment, 
for  harness  $13.75,  (7)  $22.11,  (8)  $12.50,  (10)  $16,  (12)  $32.20,  (13) 
$7.50,  (14)  $22.11,  (15)  $16. 

September  25. 

Daily  audit  sheet : 

(1)  $94.98,  (2)  $88.15,  (3)  $80,  (6)  cash  over  $3.11,  (7)  $25.42, 

(8)  $50,  (11)  50  cts.,  (12)  $41.87,  (14)  $25.42,  (15)  $6.50,  (17)  $1.15. 

Saturday,  September  26. 

Daily  audit  sheet : 

(1)  $175.84,  (2)  $170.05,  (3)  $130,  (4)  $157.52,  (7)  $120.80  (8) 
$76.50,  (9)  $130.12,  (10)  $450,  (11)  $1.50,  (12)  $99.34,  (14)  $120.80, 
(15)  $492.40,  (16)  $2.60,  (17)  $26.15. 


28 


September  28. 

The  following  miscellaneous  transactions  are  regarded  as  out  of 
the  ordinary  routine  entries  and  are  not  provided  for  on  the  daily 
audit  sheet.  Each  unusual  entry  is  to  he  explained  on  an  entry  ticket 
(see  Form  17  H)  and  entered  in  the  cash  journal,  independently  of  the 
routine  entries.  From  the  following  memoranda  enter  transactions: 

Drew  a note  for  $100  at  90  days  and  discounted  it  at  8 per  cent 
for  the  time,  receiving^redit  for  the  proceeds. 

"Bill  nut  94.1  outvyjSj^i^lale^VnVfn  17  H,  and  make  one  line  entry 
in  journal,  Col.  3,  $98;  Col.  17,  $2;  Bills  Payable,  Col.  6,  $100. 

A record  of  the  note  should  be  kept  in  the  invoices  and  bills  pay- 
able book.  This  record  you  may  consider  made  by  Mr.  Newton.  Show 
payee  and  maturity  date  in  ledger  account. 

NOTE. — In  a balance  ledger,  it  is  impossible  to  enter  the  subsequent  debit 
for  the  payment  of  this  note  on  the  same  line  as  the  credit  entry,  as  is  ordinarily 
done  in  the  common  ledger  account.  When  an  item  to  balance  a previous  entry 
is  posted  to  a balance  ledger  account,  it  is  customary  to  place  an  X mark  before 
both  debit  and  corresponding  credit  to  show  that  they  are  closed  out  of  the  ac- 
count. In  that  case,  the  items  without  X marks  are  open. 

Bought  of  J.  Q.  Adams  a horse  for  $125  for  deliver}^  purposes, 
paying  by  check  $60,  and  giving  90  days’  note  for  the  remainder  of 
purchase  price. 

Prepare  entry  ticket,  and  journalize  on  two  lines,  entering  the 
check  in  Col.  4. 

Returned  for  credit  to  Hibbing  & Leonard,  4 bx.  Prunes,  80  lb., 
at  11  cts.,  from  an  invoice  which  has  been  entered  previously  in  the 
invoice  and  bills  payable  book. 

Entry  ticket,  and  one  line  journal  entry  in  columns  16  and  9. 

NOTE. — Mr.  Newton  should  make  a record  from  the  ticket  on  margin  of 
invoices  and  bills  payable  book,  opposite  the  amount  of  the  invoice. 

Gave  D.  Bowman  credit  in  his  account,  kept  in  customers’  ledger, 
for  services  in  store,  $10. 

Entry  ticket,  journal  entry,  Cols.  17  and  8. 

NOTE. — Mr.  Newton  should  credit  his  account  in  customers’  ledger  from 
the  ticket. 

B.  K.  Govermore  gave  us  his  30  ds.  note  for  $60.42  in  settlement 
of  his  balance  of  account  carried  in  customers’  ledger. 

Enter  from  daily  audit  sheet : 

(1)  $164.30,  (2)  $154.50,  (3)  $150,  (4)  $158.12,  (7)  $99.64,  (8) 
$67.98,  (9)  $112.50,  (10)  $242.50,  (11)  $1.25,  (12)  $100.30,  (13)  $3.98, 
(14)  $99.64,  (15)  $284.50,  (16)  $1.38,  (17)  $8.25. 

September  29. 

Enter  from  daily  audit  sheet : 

(1)  $55.76,  (2)  $58.65,  (3)  $40,  (4)  $32.19,  (7)  $40.12,  (8)  $2.09, 
(10)  $16.43,  (12)  $54.07,  (13)  40  cts.,  (14)  $40.12,  (15)  $30.43,  (17;  . 
$36.84. 


29 


September  30. 


Enter  from  daily  audit  sheet : 

(1)  $140.17,  (2)  $150.50,  (3)  $135,  (4)  $40.10,  (5)  cash  short  $3, 
(7)  $69.80,  (8)  $11.39,  (9)  $40.92,  (10)  $342.90,  (12)  $132.87,  (13) 
$1.09,  (14)  $69.80,  (15)  $345.50,  (16)  82  cts.,  (17)  $12.90. 

Balance  and  rule  the  journal  and  carry  cash  and  bank  balances 
down  under  date  Oct.  1. 

Post  the  general  accounts  and  prepare  trial  balance. 

Mr.  Newton  has  completed  the  following  lists: 


Inventory  of  merchandise 
List  of  accounts  receivable 
List  of  hills  receivable 
List  of  accounts  payable 
List  of  bills  payable 


$1362.31 

283.44 

60.42 

1350.58 

265.00 


Readjust  the  ledger  by  closing  your  ledger  balance  of  merchan- 
dise in  Inventory  account  into  Trading  account,  and  the  expense 
inventory  into  Expense  account,  debiting  your  present  inventory  to 
Inventory  account  and  crediting  Trading  account. 

Compare  your  four  balances  in  your  trial  balance  with  the  four 
lists  above. 

Prepare  financial,  and  profit  and  loss  statements. 

Close  Cash  and  Charge  Sales,  also  Purchases  accounts  into 
Trading  account,  and  close  Trading  and  all  other  nominal  accounts 
(including  Cash  Short  and  Over)  into  Profit  and  Loss. 

Close  Profit  and  Loss  into  Student’s  and  Newton’s  drawing 
accounts,  each  one-half  of  the  net  profit  or  loss. 

Prepare  review^  sheet  for  HP  art  Three,  and  deliver  books  and 
papers  for  inspection. 


/>  / 

Q ' O / / 


30 


